John Healey, the Chancellor of the Exchequer, presented his first Autumn Budget on Wednesday 28th October, setting out the UK Government's plans for tax, spending and the economy.
There were announcements on wages, energy bills, transport and immigration, but students and graduates were not mentioned at all in the Chancellor's speech. There was no change of direction on student loan repayments, no new support for student maintenance, and many students may not benefit from some of the wider cost-of-living measures announced.
Here’s what the Budget means for students.
Student Loans
There was no mention of student loans in the Chancellor’s speech, despite growing calls from campaigners, graduates and current students to reform the system.
For graduates on Plan 2, there was no change to the freeze to repayment thresholds previously announced by Rachel Reeves. From April 2027, the repayment threshold will be frozen at £29,385 until April 2030, meaning more graduates will repay more as their wages rise.
For Plan 5 borrowers, graduates start repaying their student loan once they earn more than £25,000 a year, paying 9% of their earnings above that threshold. From April 2027, someone aged 21 or over working full-time on the National Living Wage will earn enough to start repaying their student loan.
Student support is a devolved issue, so any action the Chancellor would take on student loans would apply to England only.
Wages
The National Living Wage for workers aged 21 and over and minimum wage for 18 to 20-year-olds and apprentices will both rise by 3.9% from April 2027.
For students in work, that means an increase in hourly pay. However, because both rates are rising at the same pace, the gap between the adult and younger worker rates will remain at £1.94 an hour. That means progress towards a single minimum age for all workers regardless of age, which Labour committed to in its manifesto, has stalled for now.
This will apply to workers in all four UK nations.
£100 Energy Bills Payment
The Budget included measures designed to reduce household energy costs, including a £100 Household Energy Payment for eligible homes in council tax bands A to D in England. The Scottish and Welsh governments have announced the schemes will be replicated in their nations.
However, many students will miss out on the £100 payment this January - students living in university halls, private halls and HMOs (where three or more unrelated individuals share a home) will not be eligible. This is at least 500,000 students in England alone.
Additionally, as the £100 payment will be made via people's council tax accounts and full-time students don't pay council tax, it remains to be seen exactly how students in qualifying properties will be paid.
Maintenance Support
There was also no additional maintenance support for students announced in the Budget.
Maintenance support across the UK has not kept pace with the rising cost of living over recent years, while the household income threshold used to determine eligibility for the maximum maintenance loan in England has been frozen at £25,000 since 2008.
Student support is a devolved issue, so any action the Chancellor would take on maintenance support would apply to England only.
Graduate Route Visa
The Budget also announced changes that will affect international students in the UK.
International graduates from universities meeting new requirements around visa compliance and graduate outcomes will be able to remain in the UK for two years after graduating. For graduates from other institutions, the route will remain at 18 months.
While extending the route to two years will be welcome for some international students, a system where the length of your post-study visa depends on which university you attended could create additional uncertainty for prospective and current international students.
This will apply to international students and graduates studying in all four UK nations.
NUS Response
We are disappointed that the UK Government has failed to support young people and students in this Autumn Budget. Read our full response here: https://www.nus.org.uk/nus-autumn-budget-2026
We have signed up to take part in the International Youth Strike taking place on Friday 20th November, you can sign up for more information here: https://www.nus.org.uk/youth-strike
