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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.

It could be welcome news to some who have seen their pay packets squeezed over recent years as a result of the cost of living crisis, though economists have warned tax cuts would be unaffordable and would need to be reversed after an election.

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.”


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open-source information. Through multimedia storytelling, we aim to better explain the world while also showing how our journalism is done.

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Child sexual exploitation victims ‘not in scope’ of violence against women and girls strategy

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Child sexual exploitation victims 'not in scope' of violence against women and girls strategy

Victims of child sexual exploitation are “not explicitly within the scope” of the Violence Against Women and Girls (VAWG) strategy being drafted by the government, Sky News can reveal.

Child Sexual Abuse and Exploitation (CSEA) is a form of child abuse, described by police as a “critical threat” to women and girls.

It includes crimes such as grooming, and can involve both physical contact, such as rape, or non-physical – like forcing children to look at sexual images.

Sky News has been shown an internal Home Office document presented to various stakeholders in the sector.

Screenshot detailing strategy
Image:
Screenshot detailing strategy

It’s titled “Scope of the Strategy… Our draft definition of VAWG”, and says that while it recognises “links” between VAWG and child sexual exploitation, it is not “explicitly within the scope of the strategy”.

“VAWG is Violence Against Women and Girls. If you take child sexual abuse out of it, where are the girls?” Poppy Eyre told Sky News.

Poppy was sexually abused and raped by her grandfather when she was four.

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It wasn’t until she was 11, after a PHSE lesson on abuse at school, that she understood the enormity of what had happened.

“I remember very vividly when the police came round and told me… this is what we’re charging him with,” said Poppy.

“We’re charging him with sexual abuse and rape. And I remember being like, I had no idea that’s what it was, but I know that’s really bad.”

Poppy Eyre was sexually abused and raped by her grandfather when she was four
Image:
Poppy Eyre was sexually abused and raped by her grandfather when she was four

Poppy’s grandfather was convicted and died in prison.

She questions how authorities would police crime if child sexual abuse is excluded from an umbrella strategy to tackle violence against women and girls.

“Are they holding child sexual abuse at the same level of importance as they are with violence against women? You’d hope so, but potentially not, because it doesn’t need to be in the figures”, she said.

'Are they holding child sexual abuse at the same level of importance?' asks Poppy
Image:
‘Are they holding child sexual abuse at the same level of importance?’ asks Poppy

The government has pledged to halve VAWG within a decade, by 2035.

“If the government are measuring themselves against halving violence against women and girls – if they’re not looking at the scale of child sexual abuse and child sexual exploitation within that – that will mean we are failing many young victims of abuse,” said Andrea Simon, director of campaign group End Violence Against Women.

The Centre of Expertise on Child Sexual Abuse, which is funded by the Home Office, estimates 500,000 children in England and Wales are sexually abused every year.

‘Danger’ of having separate plan

Rape Crisis told Sky News that “for any strategy to be effective” it “must include all forms of gender-based violence against all women and girls”, suggesting there is a “danger” in having a separate plan for child sexual abuse.

Its chief executive, Ciara Bergman, said it could create a “problematic and potentially very unhelpful” distinction between victims of domestic abuse, expected to be covered by the strategy, and child sexual abuse.

“Some perpetrators of domestic abuse also sexually abuse their children,” she told Sky News.

The government insists the strategy will include action to tackle child sexual abuse, but says it also plans to create a distinctive programme to address its specific crimes.

Poppy's mother Miranda Eyre says she's 'speechless' and 'angry' over the government's approach
Image:
Poppy’s mother Miranda Eyre says she’s ‘speechless’ and ‘angry’ over the government’s approach

“Sexual abuse is violence against a child,” said Poppy’s mother, Miranda Eyre, who now works as a counsellor specialising in trauma.

“It is violence against girls… and you can’t separate it out,” she said. “I’m speechless to be honest… it does make me quite angry.”

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A Home Office spokesperson told Sky News it is “working tirelessly to tackle the scourges of violence against women and girls and child sexual abuse”.

“These issues are complex and run deep within the fabric of society,” they added.

“The government wholly recognises that they overlap. But it also recognises that concerted action is needed to tackle child sexual abuse which is why we have set out a range of actions… and why we are launching a national inquiry into grooming gangs.”

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British veteran, 100, recalls witnessing Japan’s Second World War surrender on USS Missouri

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British veteran, 100, recalls witnessing Japan's Second World War surrender on USS Missouri

A British veteran has spoken about how he witnessed Japan’s wartime surrender up close as a 20-year-old sailor.

Reg Draper was off Japan’s coast on the HMS Duke of York when the captain announced the war was ending.

Recalling that moment – 80 years ago today – he said cheers went up from the battleship’s crew.

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Why is it important to mark VJ Day?

Mr Draper saw the Japanese sign the agreement on USS Missouri when he went on board to help his friend, who was the ship’s photographer.

“All the ships mustered in Tokyo Bay with the USS Missouri, which was the American ship, and it was on the Missouri where they signed the peace treaty,” the 100-year-old recalled.

“Then we all came back down to Australia and we went and celebrated – we went down to Tasmania and everybody had four days leave in Hobart.

“Everybody wanted to take us to their home and there were a couple of dances in the dance hall.”

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Mr Draper still has a photo showing the peace deal being signed. Pic: Royal British Legion/PA
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Mr Draper still has a photo showing the peace deal being signed. Pic: Royal British Legion/PA

Mr Draper got a letter recognising his presence at the surrender. Pic: Royal British Legion/PA
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Mr Draper got a letter recognising his presence at the surrender. Pic: Royal British Legion/PA

Mr Draper, who grew up in Leeds, was a stores assistant on the Duke of York after volunteering on his 18th birthday.

His duties included rationing out the rum so all the sailors could get their 11am hit. He said senior crew got theirs neat while everyone else had theirs watered down.

He also recalled being clattered by Prince Philip after the Queen’s future husband, who was on a destroyer escorting his ship, came aboard.

A view looking out over the HMS Duke of York. Pic: AP
Image:
A view looking out over the HMS Duke of York. Pic: AP

Mr Draper met Prince Philip again in the 70s - but the hockey wasn't mentioned. Pic: Royal British Legion/PA
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Mr Draper met Prince Philip again in the 70s – but the hockey wasn’t mentioned. Pic: Royal British Legion/PA

“We used to have deck hockey on the quarter deck and it was murder playing deck hockey,” said Mr Draper.

“He [Philip] knocked me over once and then the next time he came round he hit me, there’s still a mark there, he gave me a clout with his hockey stick.

“He came to see me just to see how I was. They just put a stitch in and it was alright.”

The pair met again in 1972 when Mr Draper was training sea cadets for the Duke of Edinburgh awards.

He said Philip noticed his medals and recalled escorting the ship – but didn’t mention the hockey game.

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Mr Draper’s time on the Duke of York included Arctic convoys to deliver supplies to Russia and sailing to Sydney, Australia, in 1945 before joining the East Indies Fleet.

“We started going up to the islands, kicking the Japanese out of the islands as we went,” he recalled.

Japan surrendered after the US dropped two nuclear bombs on Hiroshima and Nagasaki, on 6 and 9 August.

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Mr Draper now lives in Elton in Cheshire. Pic: PA
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Mr Draper now lives in Elton in Cheshire. Pic: PA

Mr Draper turned 21 on the trip back to Europe and said 2,000 people were on board as they had picked up prisoners of war.

He went on to become an insurance salesman and said he’s planning to watch today’s 80th anniversary commemorations from his home in Elton, Cheshire.

The King released an audio message in which he said the sacrifices of VJ Day veterans should “never be forgotten”.

He described how the heroic actions of those sent to fight in the Far East, as well as the brutal treatment of civilians, “reminds us that war’s true cost extends beyond battlefields, touching every aspect of life”.

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King to warn that sacrifices of VJ Day veterans should ‘never be forgotten’

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King to warn that sacrifices of VJ Day veterans should 'never be forgotten'

The King will issue a warning that the sacrifices of the VJ Day veterans should “never be forgotten” as they “gave us more than freedom; they left us the example of how it can and must be protected”.

In an audio message, due to be released on Friday morning to mark 80 years since the end of the Second World War in the Far East, King Charles will describe how the heroic actions of those sent to fight there and the brutal treatment of civilians “reminds us that war’s true cost extends beyond battlefields, touching every aspect of life”.

In what could be interpreted as him alluding to current world events and conflicts, he will emphasise the importance of international collaboration, saying that victory in 1945 demonstrated that “in times of war and in times of peace, the greatest weapons of all are not the arms you bear but the arms you link”.

Pic: PA
Image:
Pic: PA

The six-minute audio message to the Nation, Realms and Commonwealth to mark VJ Day, echoes the audio broadcast made by his grandfather, King George VI, which the King will reference.

He recorded it in the Morning Room at Clarence House earlier this month.

Victory over Japan (VJ Day) was declared on 15 August 1945, following Imperial Japan’s surrender to Allied Forces.

With Victory in Europe (VE Day) declared in May 1945, some have felt that historically VJ Day has been overlooked, undervaluing the sacrifices of those who continued to fight on for another three months.

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In his message, the King will say that the service and sacrifice of those who fought and died in the Pacific and Far East “shall never be forgotten”.

He will also refer to the experience endured by prisoners of war and to the innocent civilians of occupied lands in the region.

Read more:
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King Charles and Queen Camilla will also publicly mark the anniversary by attending a national service of remembrance at the National Memorial Arboretum in Staffordshire.

The service, run in partnership with the Royal British Legion, will be attended by Burma Star recipients, a veteran of the British Indian Army and those involved in the Battles of Kohima and Imphal.

Prisoners of war held across the region and veterans stationed in the UK or Commonwealth countries who contributed to the war effort will also attend. A two-minute national silence will be held at midday.

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