§ Lord Mackie of Benshieasked Her Majesty's Government:
Whether they will take steps to give tax relief to students' holiday earnings to compensate for the erosion in the value of student grants.
§ The Minister of State, Treasury (Lord Cockfield)No. As student grants are not taxable, a single student will be able in the coming year to earn up to the level of the proposed single person's allowance (£1,565) on top of his grant before he becomes liable to tax. It follows that the majority of students will not in fact have to pay tax on their holiday earnings.
House adjourned at fourteen minutes before five o'clock.