§ Mr. Matthew TaylorTo ask the Secretary of State for Education and Employment, pursuant to his answer of 9 February 2001,Official Report, column 764W, what nominal rate of interest additional to that supplied in his answer would be required to allow the raising of the income threshold for repayment to £20,000 per annum; and if he will make a statement. [150665]
§ Mr. WicksIn 1999–2000 there were an estimated £982 million of income contingent loans issued in England and Wales, with an income repayment threshold of £10,000 per annum. If the income repayment threshold were raised to £20,000 per annum, an estimated nominal rate of interest 113W of 15 per cent. would be required to increase the net present value of these loans by £0.7 billion over their current net present value.
§ Mr. BoswellTo ask the Secretary of State for Education and Employment if write-offs of student loan debts initiated by his Department for trainee teachers are planned to be taxable. [155872]
§ Mr. Blunkett[holding answer 28 March 2001]Detailed proposals for the write-off of student loans are still being developed by my Department. As part of this process, we are discussing the tax position with the Inland Revenue.