There are five Income Contingent Student Loans we are concerned about in payroll. The term income contingent means the repayment amount deducted is contingent on the amount of income in the pay period (the income that is subject to Class 1 National Insurance Contributions).
On 19 August 2025, 7 months ahead of the start of tax year 2026/27, the Department for Education in England announced annual thresholds that will apply for Plans 1 and 5.
ICB conveys the threshold information provided in the 19 August 2025 announcement:
|
Plan
|
Applicable to:
|
Threshold 2025/26
|
Threshold 2026/27
|
|
1
|
Borrowers UK-wide
|
£26,065
|
£26,900
|
|
2
|
English and Welsh borrowers
|
£28,470
|
To be confirmed
|
|
3
|
English and Welsh borrowers
|
£21,000
|
To be confirmed
|
|
4
|
Scottish borrowers
|
£32,745
|
To be confirmed
|
|
5
|
English borrowers (from April 2026)
|
N/A
|
£25,000
|
For Bookkeepers
As this is news, ICB is making this available. However, you will not need this information for many months to come and it is responsible to make you aware of the announcement from the English Department for Education.
