Despite trailing plans to the press, today’s Spring Statement contained no detail on how the Government intends to reduce the debt mountain facing young dentists, which is contributing towards the exodus from the NHS.
The terms of Plan 2 loans have left typical young dentists drowning in debt, as they are uniquely exposed given their average earnings.
While the Government offered hints to the press that they were exploring options including increasing the threshold for loan repayments and cutting interest rates, nothing made the Chancellor’s statement. We had warned ministers last week that only threshold changes 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 still be left paying 9% of most of their incomes for 30 years.
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.
“Inaction here shows the limits of this Government's rhetoric” says Young Dentist Committee Chair Jeremy Boyles.
“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.”
We will continue to press for a fair deal for graduates, no matter where they choose to build a career. Jeremy Boyles has published research in the BDJ on how student debt affects dental students and their stress levels.