§ Mr. George Cunningham asked the Secretary of State for Defence what were the nominal values of allowances paid to serving officers in respect of boarding school fees on 30 April 1979; whether the amounts actually paid were grossed up to ensure that the benefit actually received equalled the nominal allowance after tax; whether the scale of grossing up took account of the individual circumstances of each officer, including any investment income, to ensure that the full benefit of the nominal allowance was received in all circumstances; and if he will give comparable information for the latest available date.
§ Mr. Wiggin: Boarding school allowance is paid, as a contribution towards the cost of boarding education, to those members of the Armed Forces who choose to ensure the continuity of their children's education in this way. The allowance provides for reimbursement of approved costs within a maximum. The maxima in force in April 1979 were:
| for the 1st and 2nd child at school | £1,182 |
| for the 3rd child | £1,407 |
| for the 4th and subsequent children | £1,464 |
| The current figures, introduced in September 1981, are: |
| 1st and 2nd child | £1,995 |
| for the 3rd child | £2,373 |
| for the 4th and subsequent children | £2,472 |
§ The allowance is paid tax free to those serving overseas. When the recipient is serving in the United Kingdom the allowance is taxable and is grossed for tax to preserve its nominal value. The grossing up procedure takes account of the recipient's income from Service sources, but not of other family income. The arrangements for taxation and grossing up of allowances have not changed in the period under discussion.