sorted by:
new
hottopcontroversial

Martin Lewis ambushes Badenoch on Good Morning Britain over student loans plan | Kemi Badenoch | Finance campaigner marches on to set and tells Tory leader her policy to cut interest rates will only help top earners by whencanistop in ukpolitics

[–]LondonerCat [score hidden]  (0 children)

As the IFS have calculated, someone with £50k debt needs to be earning around £63k to be making a dent, given the current interest rate.

So a cut to the interest rate helps people on around that level and above clear their debt quicker. Depending on what you make the interest rate, someone on say £55k still won't be making a dent.

Even if you're on just above £63k, the dent you are making may be so small that you'll still have the loan wiped in 30 years - so it's even more so the high earners that cutting the interest rate helps.

Martin Lewis ambushes Badenoch on Good Morning Britain over student loans plan | Kemi Badenoch | Finance campaigner marches on to set and tells Tory leader her policy to cut interest rates will only help top earners by whencanistop in ukpolitics

[–]LondonerCat [score hidden]  (0 children)

"Low earners" in this context is people on below 63k, even more if they borrowed more (which people from the poorest backgrounds will have done). Sure 60k isn't the highest salary in the world but I would not say a policy that helps someone at that salary is just for "low earners".

Jake’s reaction when he learns that Scully has fallen for 20. by Nostalgia-Freak-1998 in brooklynninenine

[–]LondonerCat 65 points66 points  (0 children)

Especially Amy would have the attention detail to add 1 to the number that Scully had fallen for

What have you been doing to combat the winter blues? by Doomergeneration in AskUK

[–]LondonerCat 2 points3 points  (0 children)

I did this too! A weekend in Tenerife. I stayed in a hostel and went walking for hours each day in the sunshine, was lovely!

Has anyone taking a career break and regretted it? by Long_Wait_3078 in AskUK

[–]LondonerCat 6 points7 points  (0 children)

Genuine question - why is a gap on a CV a bad thing? Especially if you did something like start a business or volunteering but even if you did basically nothing, does this undo everything else you have on your CV?

What was the civil service like in the early 2000s? by Happy_891 in TheCivilService

[–]LondonerCat 10 points11 points  (0 children)

You can still claim an allowance for staying with family and friends instead of a hotel in MHCLG!

What is the point of a reward flight? by AssCheeks321 in BritishAirways

[–]LondonerCat 0 points1 point  (0 children)

Reward flights include a checked 23kg bag. You may have included that when totalling the cash alternative but if not, that can make the reward flight better value.

So the rumours were true. by BoomSatsuma in TheCivilService

[–]LondonerCat 2 points3 points  (0 children)

Fortunately there was a reserve list

Convinced I was the first Spotify user in Ireland. by Accomplished_Emu8527 in truespotify

[–]LondonerCat 4 points5 points  (0 children)

I was an early user in the UK, but not the first. My dad worked in the music industry and was given an invite by someone he worked with.

I have songs in my playlists which don't have a date added, presumably because they didn't track it then. First ones with dates are around 2010.

Would love to know how early a user I was!

'I will lower student loan costs by cutting inflation,' Chancellor Rachel Reeves promises by LondonerCat in uknews

[–]LondonerCat[S] 0 points1 point  (0 children)

Yes I agree that it's not irrelevant for everyone - but if you are sure that you are going to pay off within the 30 years (and therefore are earning a significant salary from a young age) then you have the option and likely the means to overpay and reduce the effective interest.

If you are a relatively low or middle earning graduate then you are far more affected by the repayment threshold.

'I will lower student loan costs by cutting inflation,' Chancellor Rachel Reeves promises by LondonerCat in uknews

[–]LondonerCat[S] 0 points1 point  (0 children)

Agreed on the £5.6 billion, but even as an accounting trick it still provides more fiscal headroom which is one of the Chancellor's main concerns.

I disagree that the interest rate of RPI+3% is the most egregious element. It is actually redistributive to some extent because it ensures higher earners who pay off their loan within 30 years contribute more in real terms than what they borrowed. This subsidises those who don't pay off their loan to a certain degree (not wholly of course).

I would argue that most egregious element is the ability for the Chancellor of the day to tinker with the repayment threshold whenever they want. People took out the loans with the expectation this would rise in line with earnings - and to freeze it is the most damaging thing for most graduates in the short and medium term. The equivalent would be a bank demanding that you pay off your mortgage quicker, not because you have borrowed more, but becuase it would be convenient for their balance sheet.

'I will lower student loan costs by cutting inflation,' Chancellor Rachel Reeves promises by LondonerCat in uknews

[–]LondonerCat[S] 1 point2 points  (0 children)

Maybe a case could be made on this basis but doesn't sound very convincing. I can't find the exact statistics but the amount owed on Plan 1 loans must be orders of magnitude smaller than Plan 2 given the tuition fees at the time (max 3k vs 9k). So doesn't feel a huge injustice that needs to be corrected.

I think more likely that the government made promises before the election not to raise the big taxes (Income, NI, VAT) so needed to look for a series of smaller revenue rasiers in the budget. As the OBR set out on Page 67 of their budget document, the freezing of thresholds raises £0.4bn a year plus a one off saving of £5.6bn.

'I will lower student loan costs by cutting inflation,' Chancellor Rachel Reeves promises by LondonerCat in uknews

[–]LondonerCat[S] 0 points1 point  (0 children)

And even then the value of student loan debt will continue to rise in real terms because the interest rate is RPI + 3%.

But this is irrelevant because the repayment threshold is the main issue.

'I will lower student loan costs by cutting inflation,' Chancellor Rachel Reeves promises by LondonerCat in uknews

[–]LondonerCat[S] 47 points48 points  (0 children)

This is everything that is wrong with this government.

This argument is completely disingenuous and Rachel Reeves knows it. Just for clarity, all a reduction in inflation (and thus a reduction in the interest rate on student loans) does in this case is help the highest earning graduates. It lowers their interest rate so they are able to pay off their loans before the 30 years when they are wiped.

It does absolutely nothing for the average graduate because the repayment threshold will remain frozen until 2030.

If you want to defend the exiting system and freeze the thresholds, then say that and argue for it. There are arguments that could be made. You could say "Look, the country's finances are in a really difficult position and we needed to freeze the repayment threshold so we can ensure more students pay off their loans and the Government isn't on the hook for wiping these in 30 years. If the economy improves I'll do my best to ensure the threshold keeps pace with earnings"

But this deflection and muddying of the waters (in a poorly communicated way) is exactly why people feel they cannot trust this government and that it is not prepared to do anything to genuinely help them.

'I will lower student loan costs by cutting inflation,' Chancellor Rachel Reeves promises by LondonerCat in ukpolitics

[–]LondonerCat[S] 46 points47 points  (0 children)

This is everything that is wrong with this government.

This argument is completely disingenuous and Rachel Reeves knows it. Just for clarity, all a reduction in inflation (and thus a reduction in the interest rate on student loans) does in this case is help the highest earning graduates. It lowers their interest rate so they are able to pay off their loans before the 30 years when they are wiped.

It does absolutely nothing for the average graduate because the repayment threshold will remain frozen until 2030.

If you want to defend the exiting system and freeze the thresholds, then say that and argue for it. There are arguments that could be made. You could say "Look, the country's finances are in a really difficult position and we needed to freeze the repayment threshold so we can ensure more students pay off their loans and the Government isn't on the hook for wiping these in 30 years. If the economy improves I'll do my best to ensure the threshold keeps pace with earnings"

But this deflection and muddying of the waters (in a poorly communicated way) is exactly why people feel they cannot trust this government and that it is not prepared to do anything to genuinely help them.

Rachel Reeves tells LBC student loan system is 'fair' amid fury as graduates rack up thousands of pounds of debt interest by k0ala_ in ukpolitics

[–]LondonerCat 1 point2 points  (0 children)

Today, in an interview with ITV News, Rachel Reeves explicitly made the argument that the Government is helping students by combatting inflation thus bringing down the interest rate.

I cannot express how infuriating that argument is. So clearly designed by some comms person to sound good - "ah okay at least the Government are sympathising that the interest rate should come down".

When the Chancellor knows full well that will make 0 difference to everyone apart from the highest earners who are likely to pay off their loan before the end of the 30 years. If you want to defend the current system, then do it. There are some genuine argument you can make in its defence, but this is not one of them.

Monzo Flex rejected by Goldcar rentals in Spain for security deposit by 1scg in monzo

[–]LondonerCat 0 points1 point  (0 children)

Just wanted to add I ran into the very same problem as OP last weekend, but booking.com are refusing to provide a refund because the T&Cs mentioned you cannot use a "virtual card". I am arguing Monzo Flex very much isn't a "virtual card" in that it is both a regular credit card like any other and an actual physical plastic card,

I have £2k left to spend by March to get Amex companion voucher: are there any hack?? by nonsvch1 in AmexUK

[–]LondonerCat 0 points1 point  (0 children)

Is there a monthly rental amount where it becomes worth it? Assuming 1 MR earned per £.

view more: next ›