Legislation
Student Loan & Postgraduate Loan Rates and Thresholds 2025-26
Date
Effective 6 April 2025
Summary
Student and postgraduate loan repayments are based on income. Employees only start paying once they earn above a certain threshold, which depends on the type of loan plan Plan 1, 2, 4, 5, or Postgraduate).
Employers must apply the correct plan based on information from HMRC, usually via SL1/PGL1 notices, the employee’s P45, or the starter checklist.
Below you’ll find the current repayment thresholds and deduction rates.
| Deduction rate % | Plan type threshold for 2025 to 2026 | Pay frequency equivalent | ||
|---|---|---|---|---|
| Plan Type 1 | 9% | £26,065.00 | Weekly 2 weekly 4 weekly Monthy | £26,065 / 52x1 = £501.25 £26,065 / 52x2 =£1,002.50 £26,065 / 52x4 = £2,005.50 £26,065 / 12x1 = £2,172.00 |
| Plan Type 2 | 9% | £28,470.00 | Weekly 2 weekly 4 weekly Monthy | £28,470.00 / 52x1 = £547.50 £28,470.00 / 52x2 = £1095.00 £28,470.00 / 52x4 = £2,190.00 £28,470.00 / 12x1 = £2,372.50 |
| Plan Type 4 | 9% | £31,395.00 | Weekly 2 weekly 4 weekly Monthy | £31,395/ 52x1 = £629.71 £31,395/ 52x2 = £1,259.42 £31,395/ 52x4 = £2,518.84 £31,395/ 12x1 = £2,728.75 |
| Postgraduate loans (PGL) | 6% | £21,000.00 | Weekly 2 weekly 4 weekly Monthy | £21000 / 52x1 = £403.84 £21000 / 52x2 = £807.69 £21000 / 52x4 = £1,615.38 £21000 / 12x1 = £1,750.00 |
Tax fact card 2025 – 2026
Download your FREE tax fact card to find out the latest changes to payroll tax & legislation from April 2025. This PDF card includes all the key payroll rates and dates that…