13/08/2026
Why might a student loan deduction change on a payslip?
If you've ever looked at a payslip and thought, "Hang on… why is that different this month?" you're certainly not alone!
Student loan deductions can change when someone receives overtime, a bonus, commission, backdated pay or simply earns more, and there are some changes coming from April 2027 that employers will need to be aware of too.
We've put together a simple, jargon-free guide covering:
The new £28,005 Plan 1 threshold
What's happening with Plan 2
The latest student loan interest rates
Why deductions can change from one pay period to another
What employers should do if an employee thinks their plan is wrong
No complicated payroll speak, just the bits you actually need to know.
Have a read of our latest Zest Payroll blog and stay one step ahead.
And if payroll is giving you a headache, you know where we are!
https://www.zestpayroll.co.uk/payroll_news/why-student-loan-deductions-change-april-2027/