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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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Why many victims will welcome a national inquiry into grooming gangs

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Why many victims will welcome a national inquiry into grooming gangs

In 2019, nine men were jailed for raping and abusing two teenage girls living in a children’s home in Bradford.

One of the victims, Fiona Goddard, says more than 50 men raped her.

When the government began to talk about offering councils money for local inquiries, Fiona hoped Bradford would be one of the first to take up the offer. But there didn’t seem to be much enthusiasm.

The council was quick to point out that there had already been an independent case review into Fiona’s case, along with four other victims.

This, then, was Fiona’s first reasoning for wanting a national inquiry: The council felt it had done all that needed to be done. Fiona didn’t.

The Independent review, published in July 2021, found that while in the children’s home, Fiona “went missing almost on a daily basis”. The police attitude was that she could look after herself – she was “street-wise”.

There was “agreement by all agencies that Fiona was either at risk of Child Sexual Exploitation (CSE) or actively being sexually abused and exploited”. But “this was not addressed by any single agency”.

And “when Fiona became pregnant at the age of 15, there was little curiosity or enquiry who the father was”.

So, obvious failings were discovered.

The predictable response was that lessons had been learned and new processes put in place. But no one seemed to be held accountable.

Grooming gangs timeline: What happened, what inquiries there were and how Starmer was involved

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Grooming gangs: What happened?

Ms Goddard told Sky News: “In my serious case review she [Jane Booth, the independent chair] found seven incidences at least, in them records that she found, of them not reporting sexual abuse or rape or assault, from as young as eight years old, and one of the incidences I literally turned up covered in blood and they didn’t report it.

“That is not just misunderstanding a crime, that is making intentional decisions not to report the sexual abuse of a child.”

She adds: “Let’s not forget, these people still work within social services and the police force.”

Not only did this Independent review not satisfy Fiona, but it also didn’t begin to reflect the levels and scale of abuse Fiona had experienced outside of Bradford.

Fiona Goddard, who says more than 50 men raped her in Bradford
Image:
‘I literally turned up covered in blood and they didn’t report it,’ Fiona says

Asked where she was trafficked to, Fiona rattles off a list of cities.

“Blackburn, Rotherham, Rochdale, Birmingham, Edinburgh, Oldham – never Telford, I’d never even heard of Telford until it all came out if I’m honest – Nottingham, Oxford.”

Then she remembers she didn’t go to Oxford – men from Oxford came to her – but the point is made.

Local enquiries can’t possibly begin to explore the networks of men who traffic women, often down routes of drug trafficking being done by the same gangs.

Bradford Council told Sky News it contributed to the national Independent Inquiry into Child Sexual Abuse (IICSA) and published more than 70 reports where child sexual exploitation was discussed and has implemented findings from the independent local review which included Fiona’s case.

Fiona believes there are numerous connections leading back to Bradford – but victims from each city often believe their abusers are at the centre of it.

We’ve spoken to grooming victims across the country, and in 2022, a case was reopened in Humberside after a Sky News investigation, where we found diary entries, texts, photos, and school reports all indicating that teenage victims had been abused.

Read more on this story:
Telford child abuse victims speak out

What we know about grooming gangs, from the data
The women who blew whistle on Rotherham

One of them was “Anna”, who also wants a national inquiry. She believes there is a national pattern of police forces not believing victims or even criminalising them instead.

Obtaining her own police records using a Subject Access Request (SAR), Anna found officers’ attitudes towards her were similar to what we heard with Fiona in Bradford, blaming her abuse and injuries on “lifestyle choices of her own”.

Anna said: “Every time I look at my Subject Access Request, I still think it’s shocking.

“It was the same sort of terminology – lifestyle choices, liar, attention seeker, and the majority of it was negative.

“It was really rare that I’d come across something where they were actually listening or they were concerned.”

Humberside Police told us: “As the investigation is active, it is imperative we protect its integrity; as such are unable to comment on aspects of the investigation as this could impact or jeopardise any criminal or judicial proceedings.”

But it is years now since Anna first reported her abuse, and she believes the police have left it too late to gather evidence.

She told Sky News: “I think it’s either happening everywhere, or young people have been taken everywhere.

“I think the attitudes of the professionals, the police, social services, from what I’ve heard and seen, they seem very similar in every area.”

The government-commissioned rapid review by Baroness Casey is due to be published next week and is expected to call for a national inquiry into grooming gangs.

Like Anna and Fiona, many victims will welcome Sir Keir Starmer’s early response accepting the recommendation.

They will want the inquiry to probe into the operations of the perpetrators – who they are and how they are connected.

But they will also want clear accountability of the people and organisations who failed to act when they reported their abuse – and an understanding of why, so often, authorities fail to protect these vulnerable girls.

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Woman, 23, dies after falling in water at beauty spot in Scottish Highlands

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Woman, 23, dies after falling in water at beauty spot in Scottish Highlands

A woman has died after falling into the water at a popular beauty spot in the Scottish Highlands.

The 23-year-old had fallen into the water in the Rogie Falls area of Wester Ross.

Police Scotland confirmed emergency services attended the scene after being called at 1.45pm on Saturday.

“However, [she] was pronounced dead at the scene,” a spokesperson said.

“There are no suspicious circumstances and a report will be submitted to the Procurator Fiscal.”

Rogie Falls are a series of waterfalls on the Black Water, a river in Ross-shire in the Highlands of Scotland. They are a popular attraction for tourists on Scotland’s North Coast 500 road trip.

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‘Happy Father’s Day, Papa’: Royal children share ‘before and after’ photos with Prince William

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'Happy Father's Day, Papa': Royal children share 'before and after' photos with Prince William

Prince George, Princess Charlotte and Prince Louis have wished their “Papa”, Prince William, a happy Father’s Day.

The post on the Prince and Princess of Wales‘s official social media pages features two photos – captioned “before and after”.

The children are seen hugging their father – and then piling on top of him.

The post reads: “Happy Father’s Day, Papa (before and after!) We love you! G, C & L.”

The two photographs of the family – one colour and one black and white – were taken earlier this year in Norfolk by photographer Josh Shinner, who also took Prince Louis’s birthday portraits earlier this year.

The post follows yesterday’s Trooping the Colour, celebrating King Charles‘s official birthday, after which the family shared a rare posed photo taken on the day of the event.

The first photo shows the Prince of Wales wearing a green woollen jumper and jeans, with his arms around George, 11, and Charlotte, 10, with Louis, seven, standing in front of him.

The second picture shows everyone in a bundle, lying on grass and daffodils, with Prince William at the centre.

The Royal family traditionally shares public wishes for Father’s Day and Mother’s Day.

Last year, the Prince of Wales shared a photo of himself playing football with the King, taken in the gardens of Kensington Palace in June 1984, just ahead of his second birthday.

This year, Buckingham Palace posted a black and white photo of Prince Philip pushing a young King Charles and Princess Anne on a swing.

A second photo showed the Queen and her father, Major Bruce Shand, taken on the day of her wedding to Charles in 2005.

The message read: “To all Dads everywhere, we wish you a happy Father’s Day today.”

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