Martin Lewis apologises after gatecrashing Badenoch interview on student loans
Mr Lewis was asked to ‘take a seat’ during the interaction
Money expert Martin Lewis has clashed with Conservative leader Kemi Badenoch over the student loans system after walking onto set during her live interview on ITV.
During a conversation on Good Morning Britain about the Conservatives’ plans to cut interest rates for some student loans, Mr Lewis, who regularly appears on the show, interjected to express his disagreement.
Mr Lewis told Ms Badenoch: “If you want to help the middle-earning students, the most important thing is the repayment threshold should have been increased.”
The Conservative leader responded: “I’m the first person who’s even trying to solve this problem… I want to make sure that those young people, who are paying and paying, and their debt is not going down, get a relief.
“If you think that there is a better offer, let’s look at it… the whole student loan system is not working properly; someone has to do something.”
Mr Lewis replied: “As the interest has already been added to so many students’ loans, lowering the interest rate now will only help those who can clear within the 30 years, which means lower and middle-earning graduates won’t benefit from that change.”
Writing later on X, Mr Lewis said: “Dear @KemiBadenoch, apologies for gate crashing your @GMB interview today. Student loans are so life-impacting that I wanted to ensure the key point was made – that financially, if not psychologically, the repayment threshold is a bigger issue than the interest…”
He added: “Thank you for being so courteous after the interruption – you handled it far better than I would have the other way round. I have asked my office to request a meeting, if you are available, to discuss this more calmly.”
Ms Badenoch replied: “Hi @MartinSLewis, thank you. I really appreciate that, and honestly, don’t worry. I do love a feisty debate!
“It helps people understand what the real issues are. You and I agree on the principle: student loans have become a scam. It took me eight years to pay mine off. I made my last payment in 2011, and I remember how happy I was, and my debt was only £14,000. I can’t imagine what it’s like to be a young person with £40,000 debt today. Whatever the Coalition government brought in back in 2012, it’s clearly not working for the world of 2026.
“So I’d genuinely love to come on your show and debate my plan vs yours.”
She added: “Looking forward to seeing you soon.”
The interaction came ahead of the consumer champion’s scheduled appearance on the show, when he described the student loans system as a “nightmare” and a “mess”.
Mr Lewis focused on controversial Plan 2 loans, arguing that changes are being made to loans that would be struck down by the regulator if a commercial company tried to make them.
Following chancellor Rachel Reeves’ November budget, the salary threshold at which repayments kick in under the Plan 2 system will be frozen for three years, leading to some people having to pay more.
From the April after they graduate, borrowers make loan repayments of nine per cent of their income above a repayment threshold, which is currently £28,470.
In the autumn budget, the government announced that the repayment threshold for Plan 2 loans will be frozen at its April 2026 level (£29,385) for three years, instead of increasing with inflation. Interest rate thresholds, which determine how much interest is added to loans, will be frozen for three years.
Speaking about Plan 2 loans, which were issued to people starting university from 2012 to 2023 in England and Wales, Mr Lewis said: “When they were given them in the first place, it was said that the repayment threshold, the amount you pay nine per cent above, would go up each year. That is what students were told.
“Now what the chancellor is doing by freezing that repayment threshold is a unilateral breach of contract. She is changing the contract in a negative way that affects students, or graduates now, which no commercial company would be allowed to do, which the regulator the FCA (Financial Conduct Authority) would strike down.”
Mr Lewis added: “The really big problem with this is it’s regressive. Because lower and middle earning graduates will just pay more each year for 30 years and get nothing from it. Higher earning graduates will pay more each year until their loan is paid off so it will reduce the interest that they pay.
“Structurally, it’s horrible, it’s a breach of contract, it is not moral. Chancellor, you need to reverse that decision and give students what they were promised. The threshold needs to go up with average earnings.
“If you want (students) to benefit you either have to reduce their actual debt, you could reduce their debt, that would make a difference, and still be slightly regressive… or you massively up the repayment threshold, that’s what’s hurting people, too much money going out of their pockets amidst a cost of living crisis.”
Mr Lewis added: “And for the Plan 5 loans, the new loans that students take out now, the repayment threshold is set not much above minimum wage… the system’s a nightmare, it’s a mess.”
Interest on Plan 2 loans is charged at the rate of RPI (retail prices index) inflation plus up to three per cent, depending on how much a graduate earns. The Conservatives have announced plans to restrict this to RPI only.
Earlier in February, the National Union of Students (NUS) gathered in Westminster to call on the chancellor to reverse the decision to freeze the repayment threshold for Plan 2 student loans.
NUS president Amira Campbell said previously that the Chancellor should look for solutions to a system in “dire need of overhaul”.
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