§ 1. Mr. Winterton
asked the Chancellor of the Exchequer whether he will raise at an early date the tax threshold for the earned income of students in full-time education.
§ The Financial Secretary to the Treasury (Mr. Terence Higgins)
The tax threshold for students is the same as for other taxpayers and my right hon. Friend has no proposals to give them more favourable treatment.
§ Mr. Winterton
While thanking my hon. Friend for that rather predictable answer, may I urge him to accept this desirable way of encouraging full-time 1248 students to be less financially dependent on their parents? Will he seriously consider reviewing this tax threshold to meet rising costs and at the same time to give recognition to the important contribution which parents make at this time in the training of young persons?
§ Mr. Higgins
I appreciate the points made by my hon. Friend and I remind him that two considerations must be borne in mind. On the one hand we have the child income limit which affects a parent's entitlement to child allowance. On the other hand we have the student's own tax threshold. The view of my right hon. Friend is that the present arrangements are equitable, taking account of the various factors involved.