Relief for Students

Part of Clause 13 – in the House of Commons at 5:17 pm on 20 July 1988.

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Photo of Michael Howard Michael Howard Minister of State (Department of Environment) (Local Government) 5:17, 20 July 1988

This group of amendments concerns the community charge liability of student nurses. This is a topic that was fully considered during the passage of the Bill through this House. Indeed, at Report stage on 19 April the House debated and voted on amendments about student nurses.

At that stage I argued, and the House accepted, that it would be inappropriate to treat salaried nurses—or, indeed, others undertaking training while at work—as students for the purposes of the community charge. During that debate, however, the question of student nurses and Project 2000 was raised. I said, in response: If Project 2000 is implemented in due course and student nurses are treated as students on bursaries rather than salaries, we shall certainly reconsider their position under the community charge."—[Official Report, 19 April 1988; 'Vol. 131, c. 751.] As the House will be aware, on 23 May my right hon. Friend the Secretary of State for Social Services announced that the Government did indeed intend to accept many of the recommendations of Project 2000, including the proposal that student nurses should receive non-taxable bursaries rather than salaries.

The Government also made it clear during the debates on the Bill in another place that, once Project 2000 was implemented, assuming that the qualifying conditions concerning periods of supervised study and similar matters were met, student nurses would automatically become students for the purpose of the personal community charge, and thereby pay only 20 per cent. of the charge. So the question that arises is what the position should be before Project 2000 is implemented, at the stage when student nurses are still receiving salaries. As I said during earlier stages of the Bill's consideration, the Government argued successfully that it would be inappropriate to treat as students salaried nurses or others undertaking training while at work.

Having defeated an amendment in Committee in another place, the amendments now before us were added to the Bill on Report, against the Government's wishes. The amendments are intended to require my right hon. Friend the Secretary of State to make an order determining the level of community charge to be paid by student nurses. The Government accept that there should be such a power and we are not, therefore, asking the House to overturn the spirit behind the amendments. Unfortunately, the Lords amendments are defective in their drafting. It is by no means certain that they would have the precise effect that their proponents intend. It is essential that the defective amendments should be replaced by ones that work, and that is the purpose of the Government amendment.

The Government amendment would still require my right hon. Friend to make regulations setting out the level of community charge to be paid by student nurses. The only difference in the effect of the amendments is that the Lords amendments would allow the payment to be anywhere between 20 and 100 per cent. of the charge. The Government amendment envisages a choice between 100 per cent. payment and 20 per cent. The option on interim levels of payment will not be open, except to the extent that student nurses may be eligible for rebates. That reflects the fact that in practice the Government would choose only 20 per cent. or 100 per cent. In other words, student nurses should be treated as students in some or all circumstances.

More extensive and complicated amendments would have been required to keep open the possibility of an intermediate figure. As I have said, when Project 2000 is implemented, student nurses will automatically become students for the purpose of the community charge. That leaves the level of charge to be paid by student nurses before Project 2000 is implemented. That is an issue on which we have yet to take a decision. We shall be considering the matter carefully in the light of all the issues that arise, including the timetable for implementing Project 2000. We shall then announce our decision and lay the regulations that the amendment requires my right hon. Friend the Secretary of State to make. The Government amendment incorporates the spirit of the amendments that were passed in another place and improves on their drafting. It is for that reason that I invite the House to disagree with the Lords amendment and to accept the Government amendment.