The Plan 2 threshold freeze in 2026/27
The Plan 2 repayment threshold is the pay above which a Plan 2 loan is repaid. It is £29,385 for 2026/27, and an announcement would hold it there for 2027/28, 2028/29 and 2029/30.
The Plan 2 threshold 2026/27
| Item | 2026/27 |
|---|---|
| Yearly threshold | £29,385 |
| Monthly threshold | £2,448.75 |
| Weekly threshold | £565.09 |
| Rate on pay above it | 9% |
Plan 2 is the plan for most people who started an undergraduate course in England or Wales between 2012 and 2023. Payroll works each pay period out on its own against the monthly or weekly figure.
The freeze, and what it is
| Item | What was announced |
|---|---|
| Status | announced |
| From | 6 April 2027 |
| Tax years covered | 2027/28, 2028/29, 2029/30 |
| Threshold held at | £29,385 |
Nothing on this site calculates with the announced figure: every repayment shown anywhere on MyNetIncome uses the 2026/27 threshold in the table above, which is the one in force. The freeze covers the repayment threshold only.
A Plan 2 loan at one salary
| Situation | Repaid a year | Take-home a year | A month |
|---|---|---|---|
| No student loan | £0.00 | £31,628.16 | £2,635.68 |
| Plan 2 | £868.00 | £30,760.16 | £2,563.35 |
At the median full-time salary of £39,039 for April 2025 (ONS Annual Survey of Hours and Earnings). A frozen threshold means the gap between those two rows widens every time pay rises.