Clause 8 - Entitlement
Tax Credits Bill
11:00 am
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
The hon. Gentleman is getting ingenious. In theory, the couple may qualify for the new tax credit, whereas the children's tax credit, which is essentially tax relief, ends at 16 regardless. They could have a child in full-time education and, depending on where the rates and tapers are set, could be entitled to some or all of the tax credit. An example was given of student nurses. We do not define eligibility on the basis of someone being in or out of work; we are looking at family circumstances. The hon. Gentleman identifies one group whom he fears will lose out, but many others are potential gainers. We need to see how that will map out.
That is a sensible way to draft the legislation, but whether we revisit it will be triggered by any decisions that are subsequently taken on educational maintenance grants. I cannot envisage a situation in which people will be entitled to both. The hon. Gentleman identified people who would not come under the new tax credit; they may be the specific people who will be covered by educational maintenance grants. However, I do not know how the evaluation is going; I know only that I must keep that in consideration.
I hope that the hon. Gentleman's probing amendment has delivered the clarification he wanted and that he will withdraw it. Otherwise, I will have to ask my hon. Friends to vote against it, which I would regret.