‘Student Tax’ to hit graduates on minimum wage by April
Thousands of graduates will find themselves stranded in their home town, unable to root out professional opportunities, when April’s hike in the minimum wage drags them into the threshold of student loan repayments, a top financial services firm has warned.
The government announced an above inflation rise in the National Living Wage of 5.6 per cent as part of October’s Budget, prompting warnings of price rises and hiring freezes from business lobby groups.
But according to Blick Rothenberg recent graduates will bear much of the brunt, with those earning as little as £12.21 per hour in a full-time job sucked into to student loan repayments.
A full-time employee on the National Living Wage is set to earn roughly £26,660 when April’s uplift is introduced, meaning they will surpass the £25,000 threshold at which student loan repayments kick in.
https://www.cityam.com/student-tax-to-hit-graduates-on-minimum-wage-by-april/