Children and Young Persons Act 2008

21 Entitlement to payment in respect of higher education

(1) Section 23C of the 1989 Act (continuing functions of local authorities in respect of former relevant children) is amended in accordance with subsections (2) and (3).

(2) After subsection (5) insert—

“(5A) It is the duty of the local authority to pay the relevant amount to a former relevant child who pursues higher education in accordance with a pathway plan prepared for that person.

(5B) The appropriate national authority may by regulations—

(a) prescribe the relevant amount for the purposes of subsection (5A);

(b) prescribe the meaning of “higher education” for those purposes;

(c) make provision as to the payment of the relevant amount;

(d) make provision as to the circumstances in which the relevant amount (or any part of it) may be recovered by the local authority from a former relevant child to whom a payment has been made.

(5C) The duty set out in subsection (5A) is without prejudice to that set out in subsection (4)(b).”

(3) In subsection (9) after “subsection (4)(b)” insert “or who is in receipt of a payment under subsection (5A)”.

(4) In section 776 of the Income Tax (Trading and Other Income) Act 2005 (c. 5) (scholarship income) after subsection (2) insert—

“(2A) No liability to income tax arises in respect of income from a payment made under section 23C(5A) of the Children Act 1989 (duty to make payments to former relevant children who pursue higher education).”