A significant group of Labour backbenchers is urging the government to overhaul the student maintenance loan system in England, calling for payments to be made monthly rather than in three annual lump sums.
The Push for Monthly Payments
Labour MP Luke Charters, who represents York Outer, is spearheading the proposed legislation. He argues the current system, where students receive payments three times per academic year, creates severe budgeting difficulties. For students receiving the maximum annual loan of £10,200 outside London, this means managing £3,400 every four months.
"Could you imagine having your salary drop three times a year and getting four months all at once? It's really, really a difficult balance for students at the moment," Charters told Sky News. He highlighted that many students are forced to max out overdrafts and credit cards to cope.
Key Proposals and Support
The bill, introduced under the 10-minute rule procedure on Wednesday 7 January 2026, has two central aims:
- Switch maintenance loan payments from termly to monthly instalments.
- Provide the first payment in advance of the term starting to help cover upfront costs like rent deposits, books, and kitchen supplies.
The proposal is formally backed by 11 Labour MPs, the maximum allowed for such a bill, but Charters claims support from "dozens" more colleagues. It is also endorsed by the National Union of Students (NUS) and numerous regional student unions, representing a third of all students.
NUS President Amira Campbell stated student finance is "in dire need of reform," calling the payment plan review a great starting point.
Political Context and Wider Concerns
This initiative emerges from growing Labour Party concern about supporting young people through the cost of living crisis. Sky News learned that around 60 Labour MPs are part of a university-focused WhatsApp group discussing higher education policy.
The political landscape for student votes is shifting. The Green Party, led by Zack Polanski, secured second place in several major university constituencies like Leeds, Manchester, and Sheffield in the last general election. Polanski advocates scrapping tuition fees—a pledge Labour leader Keir Starmer initially made but later retracted.
Manchester Rusholme MP Afzal Khan, a sponsor of the bill, said the plan is about improving life for young people "who have it really tough," not just electoral politics.
However, for the bill to become law, it requires government backing. Charters said he is "confident the government is listening." The Department for Education has been contacted for comment.
The government has previously pledged to reintroduce maintenance grants for the most disadvantaged students in England from 2028. Conversely, it has also announced that tuition fees will rise with inflation from 2026, and a recent budget measure freezing student loan repayment thresholds means many graduates will pay more.
Charters, 30, who is repaying his own student loan, concluded: "For successive governments going back decades, parliament has not talked enough about student issues. I say enough's enough."
