HC Deb 09 February 1961 vol 634 cc88-9W
106. Mr. John Hall

asked the Minister of Education when he intends to publish details of the scale of parental contributions in respect of grants to students which will come into force on 1st October, 1961.

Sir D. Eccles:

I am circulating below a table comparing the contributions required under the present and under the revised scale at various levels of gross income, taking the example of parents with an only child at the university. It also shows the present value at these levels of the Income Tax child allowance. It will be seen that the contributions now required will be less than the value to the parents of the Income Tax child allowance if their gross income is under £1,400.

On the present scale, parental contributions are calculated at 14 per cent. of the balance of income in excess of £450 (£420 in Scotland). The revised scale requires a contribution at the rate of 8 per cent. of the balance of income in excess of £600 up to £1,400, no contributions being required from parents whose balance of income is less than £700. The additional contributions required from those whose balance of income exceeds £1,400 will be £10 for each £100 above £1,400.

In assessing the balance of income, deductions will be made from gross income on present lines, but I have increased the maximum allowances for each dependent child other than the award-holder from £170 to £200 and I am retaining the allowance for educational expenses for other dependent

Only child at university
Present Contribution
Gross Income Balance* of income England and Wales Scotland Revised Contribution Value of Tax Allowance
£ £ £ £ £ £
400 380 — — — 5
500 475 — 8 — 20
600 570 16 23 — 31
700 665 30 37 — 39
800 760 43 48 13 46
900 855 57 62 20 52
1,000 950 70 76 28 57
1,100 1,045 83 90 36 58
1,200 1,140 96 101 43 58
1,300 1,235 110 115 51 58
1,400 1,330 123 129 58 58
1,500 1,425 136 143 66 58
,600 1,520 149 154 76 58
1,700 1,615 163 168 85 58
1,800 1,710 176 182 95 58
1,900 1,805 190 196 104 58
2,000 1,900 203 208 114 58
2,500 2,375 269 275 161 73
3,000 2,850 336 342 209 77
3,500 3,325 403 409 256 84
4,000 3,800 Full cost Full cost 304 84
5,000 4,750 Full cost Full cost 399 92
*In assessing the balance of income, the gross income is reduced by allowances for such items as superannuation contributions, life insurance premiums and mortgage interest. For the purpose of this table these items have been assumed to amount to 5 per cent. of gross income.