asked the Chancellor of the Exchequer if he can now make a statement about the treatment, for tax purposes after 1977–78, of the parents of children living abroad.

Yes. The Government have, after careful consideration, decided that it would not be justifiable to extend into later years the special arrangements applying to child tax allowances in 1977–78 for children living abroad, which I announced on 14th December. It is, therefore, proposed that the child tax allowances for this group should as from 1978–79 be reduced to the same level as child tax allowances generally in that year, and phased out thereafter on the same basis.