§ 48. Mr. Nicholls
asked the Secretary of State for Education and Science if he is satisfied with the operation of deeds of covenant in relation to students' maintenance; and if he will make a statement.
§ Mr. Walden
The operation of deeds of covenant are a matter for my right hon. Friend the Chancellor of the Exchequer. However, my understanding is that many parents choose to pay their parental contribution to their student child's grant by means of a deed of covenant, rather than direct to the child, because of the tax advantages of this method of payment. It is, of course, for each family to decide on the method of payment which is most beneficial in their particular circumstances.