Plan 2 was designed and implemented by the previous government. Interest is applied at Retail Price Index (RPI) for borrowers whose earnings are below the repayment threshold, including those on statutory maternity leave. This means that the value of their outstanding loan will not increase in real terms.

Under this government, borrowers receiving Plan 5 student loans, accrue interest at RPI only, currently 4.1%, so graduates, including high-earners, will not repay more than they borrowed in real terms. Under all repayment plans, borrowers whose earnings fall below the repayment threshold are not required to make repayments.

Graduates only begin repaying once their earnings exceed the repayment threshold, paying 9% of income above that level. If earnings fall, such as when on statutory maternity leave, so do a borrowers repayments. Therefore, whilst interest accrues on loan balances until the loan has been repaid in full or cancelled, interest rates do not impact monthly repayments made by borrowers.

For all borrowers, any outstanding loan, including interest accrued, will be cancelled after the loan term ends, and debt is never passed on to family members or descendants. There are no commercial loans that offer this level of protection to borrowers.

The Government recognises that a cancer diagnosis during pregnancy or maternity leave can have a significant impact on women and their families.

The National Cancer Plan sets out how we will provide support to people with cancer before, during, and after their treatment, including for pregnant or postnatal women. Everyone should get a personalised needs assessment and personal cancer plan that takes into account their wider psychological and social needs, including the impact of pregnancy where relevant.

Health professionals should provide integrated care for pregnant women facing serious physical illnesses and mental health challenges. Significant progress has been made across England in recent years to transform and increase access to specialist perinatal mental health services.

Automatic Enrolment has delivered substantial progress in increasing workplace pension participation among women, in addition to the reforms delivered through the new State Pension which have reduced historic inequalities. However, for the significant gaps between men and women remain, both in terms of pension participation and wealth, reflecting wider structural inequalities in the labour market. Periods of reduced pay during maternity leave may also contribute to reduced retirement savings for women.

The Pensions Commission will consider steps to improve pension outcomes for all, especially those groups we have identified at greater risk of under saving for retirement, including women. The Commission's final report will be published in early 2027 and the Government will consider their recommendations carefully.

The Government recognises that a cancer diagnosis during pregnancy or maternity leave can have a significant impact on mothers and their families. In February 2026, the Department of Health and Social Care published the National Cancer Plan, which includes support to help people with cancer remain in or return to work and access advice and assistance throughout their treatment and recovery. The Parental Leave and Pay Review presents a much-needed opportunity to consider the system of parental leave and pay. All current parental leave and pay entitlements are in scope of the Review, including maternity.

Interest accrues on loan balances until the loan has been repaid in full or cancelled, but interest rates do not impact monthly repayments made by borrowers.

Borrowers on Plan 2 terms have interest applied at a rate of Retail Price Index only when earnings are below the repayment threshold, such as while on statutory maternity leave, ensuring that the loan’s debt value will not grow in real terms. Additionally, borrowers earning under the repayment threshold are not required to make any repayments.

For all borrowers, any outstanding loan, including interest accrued, will be cancelled after the loan term ends, and debt is never passed on to family members or descendants.

The Government is undertaking a Review of Parental Leave and Pay, which provides an important opportunity to consider whether the current system meets the needs of modern working families, including those who are self-employed.

The Review will conclude in early 2027, at which point the Government will set out its findings and next steps for any potential reforms.

Some employers choose to offer more than the statutory minimum pay, sometimes referred to as ‘occupational’ or ‘contractual’ parental pay. This is a matter between employers and employees.

Parental leave and pay entitlements are being considered as part of the Government’s Parental Pay and Leave Review. The Review will report in early 2027 with next steps for taking any reforms forward to implementation.

A cancer diagnosis is distressing at any stage of life, and especially for mothers on maternity leave, at a time that should be focused on recovery, bonding and family life.

The Department of Health and Social Care’s National Cancer Plan sets out how people with cancer, including pregnant and postnatal women, are supported before, during and after treatment, including supporting mothers to stay in work.

Alongside this, the Parental Leave and Pay Review is examining how maternity leave and the wider parental leave and pay system can better support working families. The Review will report in early 2027.

Ministers providing temporary leave cover, whilst a minister takes maternity leave under the provisions of the Ministerial and other Maternity Allowances Act 2021, are asked to waive their entitlement to a severance payment.

Since 13 October 2025, ministers who serve for fewer than six months are expected to forgo their severance payment.

Ministers who return to office within three months of leaving will be asked to forgo their salary until the end of that three-month period.

Provisions for maternity cover and severance payments are set out in the Ministerial and other Maternity Allowances Act 2021, and Ministerial and Other Pensions and Salaries Act 1991 respectively.

Pregnant women and new mothers have enhanced protections against redundancy dismissals, which cover the pregnancy period, the time spent on maternity leave, and a return-to-work period. The protections give those employees priority for being offered suitable and alternative roles if any are available and place them ahead of other employees who are also at risk of redundancy.

The government will put in place legislation that makes it unlawful to dismiss pregnant women, mothers on maternity leave and for at least six months after they return to work, except in specific circumstances. This starts with the Employment Rights Act, with regulations to follow. We intend for the measure to come into force in 2027.

As announced in the Schools White Paper, we will fund schools to improve maternity pay, doubling the period of full pay from the current offer of four weeks to eight weeks for school teachers and leaders.

Additionally, building on the success of the current Flexible Working Ambassador Programme, as announced in the Schools White Paper, the government is investing in a new teacher retention programme from Autumn 2026. The programme will support schools to promote flexible working which will help schools to better support staff with caring responsibilities.

Proposals for introducing an earned settlement model, as set out in the Command Paper “A Fairer Pathway to Settlement” (CP1448), were subject to a public consultation, which opened on 20 November 2025 and closed on 12 February 2026.

Contributory benefits and statutory payments are not classed as public funds for immigration purposes. As such, individuals subject to a no recourse to public funds condition but who have paid the necessary National Insurance contributions or have relevant periods of employment or self-employment can access these benefits.

As part of this consultation, we also sought views on the potential impact of the proposed changes, including whether those on maternity leave should be exempt from certain requirements.

Implementation of the earned settlement arrangements will be subject to economic and equality impact assessments, which we have committed to publish in due course.

The department and the Student Loan Company do not hold information on the amount of additional money accrued by women while on maternity leave.

Student loan repayments are linked to income, not to the amount borrowed or interest applied. Repayments are made at a constant rate of 9% above the earnings threshold. Borrowers earning under the repayment threshold, including while on statutory maternity leave, are not required to make repayments, however, interest will continue to accrue. When borrowers are on maternity leave, and earnings are below the earnings threshold, interest, across both plan 2 and plan 5, is applied at the Retail Price Index only.

Any outstanding loan, including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.

The department will release an equalities impact assessment, including the impact on lifetime repayments, alongside other borrower impacts for the plan 2 repayment threshold and interest threshold freeze announced at the 2025 Budget.

The department and the Student Loan Company do not hold information on the amount of additional money accrued by women while on maternity leave.

Student loan repayments are linked to income, not to the amount borrowed or interest applied. Repayments are made at a constant rate of 9% above the earnings threshold. Borrowers earning under the repayment threshold, including while on statutory maternity leave, are not required to make repayments, however, interest will continue to accrue. When borrowers are on maternity leave, and earnings are below the earnings threshold, interest, across both plan 2 and plan 5, is applied at the Retail Price Index only.

Any outstanding loan, including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.

The department will release an equalities impact assessment, including the impact on lifetime repayments, alongside other borrower impacts for the plan 2 repayment threshold and interest threshold freeze announced at the 2025 Budget.