§ Ms WalleyTo ask the Secretary of State for Education and Employment if he will disregard invalidity care allowance paid to the natural parent of a young person applying for an educational maintenance allowance where a sibling is disabled and in need of the benefit arising from the invalidity care allowance; and if he will make a statement. [152641]
§ Mr. WicksEducation maintenance allowance (EMA) is paid on the basis of an assessment of the income available to a student's parents. In line with long established practice, taxable benefits are included in the income to be assessed. Invalid care allowance (ICA) is classed as a taxable payment because it is intended to compensate a carer for the lost earnings which result from not being able to work full-time. Exempting income-replacement benefits from tax would discriminate against those whose income comes from earnings. But other benefits which are intended to meet a specific need of the claimant—such as attendance allowance and disability allowance—are not subject to tax, and are not included in the income to be assessed in deciding on eligibility for EMA.