The British Dental Association has slammed the total failure to deliver trailed reform of student loans in the Spring Statement.
The Government had trailed action on Plan 2 loans which have left the typical young dentist, who are uniquely exposed given their average earnings, facing a debt mountain, which is contributing towards the exodus from the NHS. Trailed options included increasing the threshold for loan repayments and cutting interest rates. The BDA had warned ministers last week that only the former would make a material difference to debt levels for typical dentists.
With average earnings at £65,000, young dentists working within the NHS – who already graduate with among the highest levels of debt in the UK – face a perfect storm, paying the maximum interest rate but not earning enough to pay it off quickly. They will be left paying 9% of most of their incomes for 30 years.
The BDA estimates that with an average debt of £52,000 a dental graduate in 2017 is still on track to repay around double what was borrowed. Ultimately, many will be left writing off over £100,000 in unpaid debt.
Jeremy Boyles, Chair of the BDA’s Young Dentist Committee, said:
“Inaction here shows the limits of this Government's rhetoric.
“They’ve failed to offer any path that could lift a huge burden on young dentists. And patients desperate to access NHS care will likely end up paying the price.”