§ Mr. GreenTo ask the Chancellor of the Exchequer what plans he has to introduce tax relief for tuition fees paid by mature students. [82328]
§ Dawn PrimaroloThe Chancellor announced in the Budget that the national framework for Individual Learning Accounts (ILAs) is to be launched in the year 2000. Under this framework, individuals will be able to obtain 20 per cent. discounts, rather than tax relief, on the first £500 a year of eligible learning which they pay for—with 80 per cent. discounts for certain key courses, including computer literacy. Contributions paid by employers into employees' ILAs will qualify for a deduction from taxable profits and will be tax and NICs free in the hands of their employees, provided employers contribute to the ILAs of their lowest paid workers on similar terms.
ILAs will replace vocational training relief (VTR), which is currently available to individuals paying for their own vocational training. In the Budget, VTR at the higher rate was withdrawn for payments made on or after 6 April 1999, and will be abolished completely some time in 2000–01.
There are no plans for ILAs to cover full-time courses or Higher Education tuition fees which are already subsidised by the taxpayer.