Martin Lewis apologises to Kemi Badenoch for ‘gate crashing’ ITV interview

Martin Lewis has apologised to Kemi Badenoch for “gate crashing” her interview on ITV’s Good Morning Britain.

The Conservative leader was being interviewed on the show on Monday while Mr Lewis was waiting to appear to discuss student loans.

Mr Lewis walked onto the set during the interview and the two strongly debated the Conservatives’ proposals on how to fix issues with the loan system.

Ms Badenoch said after the show that she loves a “feisty debate” would “genuinely love” to appear on Mr Lewis’s show for a further discussion.

Interest on Plan 2 loans is charged at the rate of RPI (retail prices index) inflation plus up to 3%, depending on how much a graduate earns. The Conservatives have announced plans to restrict this to RPI only.

During a conversation with her about the Conservatives’ proposals, 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.”

Ms Badenoch told Mr Lewis: “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 told Ms Badenoch: “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.”

Speaking during his own section on Good Morning Britain, Mr Lewis said changes being made to Plan 2 loans that would be struck down by the regulator if a commercial company tried to make them.

Following Chancellor Rachel Reeves’s November budget, the salary threshold at which repayments kick in under the Plan 2 system is set to be frozen for three years, leading to some people having to pay more.

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 9% 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.”

Mr Lewis added: “It’s psychologically horrible, the way we do student loans. And I understand why many people are out there going: ‘My loan is going up and up, I’m never going to repay it’.

“The system was designed that most people wouldn’t repay it… it’s a graduate contribution, is what I would call it.”

Mr Lewis added: “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.

“And the payment threshold is the key, which is why I’m so furious that the Chancellor is effectively lowering it by freezing it.

“But if you want to do it, you don’t just undo the freeze, you put it up, so you repay 9% of everything above, let’s say 40 grand.”

“And then those people who have gained financially, got a graduate premium from their education, they would continue to pay, but those people who haven’t wouldn’t.

“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.”

He added: “We totally need to think about how we communicate it and change the actual amount people are paying.”

In another post on X on Monday, Mr Lewis said: “I’m concerned that my debate with Kemi Badenoch this morning distracts from the most immediate problem.”

He said of the plans to freeze the Plan 2 student loan threshold: “This is effectively a unilateral negative breach of the student loan contract. Students were told the threshold would rise with average earnings. No commercial lender would be allowed to do this.

“The govt shouldn’t do it either. Changing the terms of future students loans is a political decision – people may not like it but it is transparent. Negatively changing the terms of contracts already signed, and long in place, is a breach of natural justice.”

A Government spokesperson said: “We inherited the student loans system, including Plan 2, which was devised by the previous government. Threshold freezes have been introduced to protect taxpayers and students now, alongside future generations of learners and workers.

“The student finance system protects lower-earning graduates, with repayments determined by incomes and outstanding loans and interest being cancelled at the end of repayment terms.

“Since we were elected, we have been committed to supporting the aspiration of anyone who can and wants to attend higher education, including by reintroducing targeted maintenance grants to support the Prime Minister’s target of two-thirds of young people taking a gold standard apprenticeship, higher training or heading to university by the age of 25.

“This is all alongside our ongoing support for working people starting off in life, as we build 1.5 million new homes, expanding government-funded childcare, introducing free breakfast clubs and freezing rail fares.”