Graduates in their 20s are earning less in real terms than they were before the 2008 financial crash, and are £1,200 worse off than they were at the start of the pandemic on average, despite recent cuts to national insurance.
Chancellor Jeremy Hunt has teased further national insurance cuts in his upcoming budget, following on from the recent decrease announced in his autumn statement.
People aged between 22 and 29 are earning less in real terms now than they were in 2002.
This is when factoring in inflation, including rising housing and food costs, over the period.
In 2023 prices, the median salary for a graduate in their 20s is £23,990 after paying taxes and student loan – compared with £25,200 in 2020.
Helen Miller, deputy director of the Institute for Fiscal Studies (IFS), said: “This comes in the context of an ongoing, multi-year freeze to personal tax thresholds.
“By 2027 (the last year of the planned freezes), an employee earning £35,000 will be paying about £440 a year more in direct tax overall as a result of all the changes to income tax and NICs since 2021.
“The government has announced significant tax rises. Regardless of what the chancellor announces in the budget, it is highly likely that this will be the largest tax-raising parliament on record.”
Changes to student loan plans
Student loan repayments are set at 9% of income above the salary threshold, which has been frozen at £27,295 since 2021/22.
Still, a recent graduate on an average income is currently paying around £13 a month towards their student loan, so is it really a big deal?
A big factor in the impact of student debt is not just how much people pay back per month, but how much they pay back over their working lives, and when they started university.
Those who went to university on ‘Plan 2’ higher university fees (£9,000 and above from 2012/13) will pay back almost £20,000 more than the previous ‘Plan 1’ cohort in their lifetime, according to estimates by the IFS.
Those who started in the 2023 academic year or later will be eligible for ‘Plan 5’ student loans, which have different repayment terms.
The threshold will increase in line with the Retail Prices Index (a measure of inflation) instead – meaning it will likely increase more slowly than under the previous policy and more graduates will start paying back their debt sooner.
Under the new system, student debt will only be written off after 40 years rather than 30, meaning many will make repayments for longer, potentially into their 60s.
This particularly affects low to middle earners, who are less likely to have paid off their debt after 30 years.
However, under this new system, no borrower will repay more than they borrowed (in real RPI terms) – so the highest earners can expect to repay significantly less than if they had started university in 2022 due to the lower interest rate.
On the other hand, people on lower incomes will end up paying back more.
‘A thundercloud waiting to burst’
Dr Farhana Ghaffar, researcher at the University of East Anglia, has been looking at the impact of the post-2012 loan system on students and young people and interviewed graduates who had been through this system to see how it had affected them.
“The idea was generally that a university degree would set you up for life, so it would set you up for a particular kind of life where you’d be able to have a home, start a family,” she said.
But in exchange for this, students are taking on “enormous” amounts of debt, which can have an emotional impact.
“I think sort of five or six years on, they were constantly worried about the debt that was getting bigger and bigger. And obviously they couldn’t do anything about it.
“They’re not at a stage yet where I think we can kind of talk too much about the long-term impacts. But something that was really striking is it was a future worry.
“You know, ‘when I get a mortgage’ or ‘when I start a family’. Someone described it almost as being like a thundercloud, waiting to burst and they just didn’t know when it would happen.”
Anastasia is a Romanian student at the University of Dundee. Her tuition fees are free because she started studying in Scotland while the UK was part of the EU.
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English students still have to pay to study in Scotland but students from other EU countries could study for free, as Scottish students do.
Anastasia isn’t sure if she would have gone to university at all if she had to pay fees.
She said: “I’d have to take a few months to think about it. And really, really think about it. I don’t think it’s a decision I could make just like that.
“If there was a way of knowing the payments would be acceptable and manageable – even though I probably won’t have a good job right after I graduate – maybe I would do that but very low chances.
But Anastasia knows that decision too could affect her future prospects, saying “[we are] in a world where everybody expects you to have a diploma for anything”.
“There are so many companies out there that will not give you the job even though you’re fully able to give them a wonderful performance, if you don’t have a diploma.”
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An alleged attack by the Manchester Arena bomb plotter on prison officers at a high-security jail “will stick with” those impacted “for the rest of their lives”, a former officer and colleague of the victims has said.
He was serving his sentence in a separation unit, known as a “jail within a jail”, after being found guilty of 22 counts of murder for helping his brother Salman Abedi carry out a suicide bombing at an Ariana Grande concert in 2017.
The attack has raised fresh questions about the safety of prison staff.
Inmates inside separation units had access to cooking facilities, which has now been suspended.
Image: Abedi was moved back to Belmarsh after the alleged attack
‘It will stick with them for life’
Matthew, who only wants to be referred to by his first name, worked with the officers who were hospitalised following the attack.
“I’ve spoken to ex-colleagues who I’m still friends with,” he told Sky News.
“They’ve not discussed the specifics of the incident, but they’ve said it will stick with them for the rest of their lives.”
Matthew broke down as he described the “obscene” and “ludicrous” levels of violence that staff face inside prison.
He’s worked at a number of different jails.
“I’ve been there when you’re mopping your colleagues’ blood… when you’ve seen a serious assault, and you don’t know if they’re gonna be OK, and then 10 minutes later, you’ve got to get back on with your day, you’ve got to carry on running the regime,” he said.
“It is difficult, and it is awful.”
Image: Matthew worked with the officers who were hospitalised
‘No adequate protection’
There were 10,496 assaults against prison staff in England and Wales in the 12 months to September – a 19% rise on the previous year.
“The reality is there’s no adequate protections for prison staff, and that’s a great frustration,” the general secretary of the Prison Officers’ Association union, Steve Gillan, told Sky News.
Having visited HMP Frankland earlier in the week, and spoken to many of the officers who were involved, Mr Gillan described the mood among colleagues as one of “anger, frustration, and sadness”.
The association, which represents prison officers, is calling for a “reset” – and for staff to be given stab-proof vests and tasers in “certain circumstances”.
Unwary travellers returning from the EU risk having their sandwiches and local delicacies, such as cheese, confiscated as they enter the UK.
The luggage in which they are carrying their goodies may also be seized and destroyed – and if Border Force catch them trying to smuggle meat or dairy products without a declaration, they could face criminal charges.
This may or may not be bureaucratic over-reaction.
It’s certainly just another of the barriers EU and UK authorities are busily throwing up between each other and their citizens – at a time when political leaders keep saying the two sides should be drawing together in the face of Donald Trump’s attacks on European trade and security.
Image: Keir Starmer’s been embarking on a reset with European leaders. Pic: Reuters
The ban on bringing back “cattle, sheep, goat, and pig meat, as well as dairy products, from EU countries into Great Britain for personal use” is meant “to protect the health of British livestock, the security of farmers, and the UK’s food security.”
There are bitter memories of previous outbreaks of foot and mouth disease in this country, in 1967 and 2001.
In 2001, there were more than 2,000 confirmed cases of infection resulting in six million sheep and cattle being destroyed. Footpaths were closed across the nation and the general election had to be delayed.
In the EU this year, there have been five cases confirmed in Slovakia and four in Hungary. There was a single outbreak in Germany in January, though Defra, the UK agriculture department, says that’s “no longer significant”.
Image: Authorities carry disinfectant near a farm in Dunakiliti, Hungary. Pic: Reuters
Better safe than sorry?
None of the cases of infection are in the three most popular countries for UK visitors – Spain, France, and Italy – now joining the ban. Places from which travellers are most likely to bring back a bit of cheese, salami, or chorizo.
Could the government be putting on a show to farmers that it’s on their side at the price of the public’s inconvenience, when its own measures on inheritance tax and failure to match lost EU subsidies are really doing the farming community harm?
Many will say it’s better to be safe than sorry, but the question remains whether the ban is proportionate or even well targeted on likely sources of infection.
Image: No more gourmet chorizo brought back from Spain for you. File pic: iStock
A ‘Brexit benefit’? Don’t be fooled
The EU has already introduced emergency measures to contain the disease where it has been found. Several thousand cattle in Hungary and Slovenia have been vaccinated or destroyed.
The UK’s ability to impose the ban is not “a benefit of Brexit”. Member nations including the UK were perfectly able to ban the movement of animals and animal products during the “mad cow disease” outbreak in the 1990s, much to the annoyance of the British government of the day.
Since leaving the EU, England, Scotland and Wales are no longer under EU veterinary regulation.
Northern Ireland still is because of its open border with the Republic. The latest ban does not cover people coming into Northern Ireland, Jersey, Guernsey, or the Isle of Man.
Rather than introducing further red tape of its own, the British government is supposed to be seeking closer “alignment” with the EU on animal and vegetable trade – SPS or “sanitary and phytosanitary” measures, in the jargon.
Image: A ban on cheese? That’s anything but cracking. Pic: iStock
UK can’t shake ties to EU
The reasons for this are obvious and potentially make or break for food producers in this country.
The EU is the recipient of 67% of UK agri-food exports, even though this has declined by more than 5% since Brexit.
The introduction of full, cumbersome, SPS checks has been delayed five times but are due to come in this October. The government estimates the cost to the industry will be £330m, food producers say it will be more like £2bn.
With Brexit, the UK became a “third country” to the EU, just like the US or China or any other nation. The UK’s ties to the European bloc, however, are much greater.
Half of the UK’s imports come from the EU and 41% of its exports go there. The US is the UK’s single largest national trading partner, but still only accounts for around 17% of trade, in or out.
The difference in the statistics for travellers are even starker – 77% of trips abroad from the UK, for business, leisure or personal reasons, are to EU countries. That is 66.7 million visits a year, compared to 4.5 million or 5% to the US.
And that was in 2023, before Donald Trump and JD Vance’s hostile words and actions put foreign visitors off.
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Trump: ‘Europe is free-loading’
More bureaucratic botheration
Meanwhile, the UK and the EU are making travel between them more bothersome for their citizens and businesses.
This October, the EU’s much-delayed EES or Entry Exit System is due to come into force. Every foreigner will be required to provide biometric information – including fingerprints and scans – every time they enter or leave the Schengen area.
From October next year, visitors from countries including the UK will have to be authorised in advance by ETIAS, the European Travel and Authorisation System. Applications will cost seven euros and will be valid for three years.
Since the beginning of this month, European visitors to the UK have been subject to similar reciprocal measures. They must apply for an ETA, an Electronic Travel Authorisation. This lasts for two years or until a passport expires and costs £16.
The days of freedom of movement for people, goods, and services between the UK and its neighbours are long gone.
The British economy has lost out and British citizens and businesses suffer from greater bureaucratic botheration.
Nor has immigration into the UK gone down since leaving the EU. The numbers have actually gone up, with people from Commonwealth countries, including India, Pakistan and Nigeria, more than compensating for EU citizens who used to come and go.
Image: Editor’s note: Hands off my focaccia sandwiches with prosciutto! Pic: iStock
Will European reset pay off?
The government is talking loudly about the possible benefits of a trade “deal” with Trump’s America.
Meanwhile, minister Nick Thomas Symonds and the civil servant Mike Ellam are engaged in low-profile negotiations with Europe – which could be of far greater economic and social significance.
The public will have to wait to see what progress is being made at least until the first-ever EU-UK summit, due to take place on 19 May this year.
Hard-pressed British food producers and travellers – not to mention young people shut out of educational opportunities in Europe – can only hope that Sir Keir Starmer considers their interests as positively as he does sucking up to the Trump administration.
A 41-year-old man from Penylan has been charged with murder, preventing lawful and decent burial of a dead body and assaulting a person occasioning them actual bodily harm.
A 48-year-old woman from London has been charged with preventing a lawful and decent burial of a dead body and conspiring to pervert the course of justice.
They both appeared at Cardiff Magistrates’ Court on Saturday.
“This brings our search for Paria to a sad and tragic end,” said Detective Chief Inspector Matt Powell.
“Paria’s family, all those who knew her, and those in her local community, will be deeply saddened and shocked by these latest developments.
“Family liaison officers are continuing to support Paria’s family.”