Wasn't there a very similar thread here recently? I can't find it now, but maybe someone else will remeber it? I wonder if it's the same school.
Anyway, I take my students flying in as much bad weather as I think they can handle. But it does depend what stage of the course they are at. A student learning about the effects of controls, for example, needs a good clear horizon which might only come with, say, 12km viz or more. A student who is just being introduced into the circuit will not benefit from have a 20kt cross-wind.
On the other hand, once my students are close to their PPL, I expect them to be able to fly in the circuit with 5km viz or less, 15kt x-wind or more. Weather outside the circuit can also be much lower than for early students, depending on exactly what exercises we are doing. I don't expect them to be comfortable in these conditions, and I wouldn't send them solo even if my school allowed me to - but I view it as an important part of their training to know what it is like to fly at or very close to their limits, and to find out what their limits are, while I am with them to keep them safe.
As Hufty says, when you are talking about the CPL/IR phase of your course, you are expected to be able to fly without any intervention from your instructor in just about any conditions which are legal.
If your school is not letting you fly in anything other than perfect weather, then have a word with your instructor, then the chief instructor, try changing instructors, and if none of this makes a difference find another school.