The Education (Mandatory Awards) Regulations 2003

Regulations 17 and 24(2)

SCHEDULE 1 FEES

The fees referred to in regulation 17 are the aggregate of any fees payable by the student in respect of, or otherwise in connection with, his attendance on the course, including admission, tuition and graduation fees, but excluding fees payable—

(a) to an institution for awarding or accrediting any qualification where the institution does not provide the whole or part of the course and is not a publicly funded institution;

(b) for board and lodging;

(c) for field trips (including any tuition element of such fees);

(d) for attending any graduation or other ceremony; and

(e) which are prescribed by the Education (Student Fees) (Exceptions) (England) Regulations 1999(1);

subject to the following maxima:

(i) in the case of a course not covered by any other sub-paragraph of this paragraph, £1,125, but where the final year of the course is ordinarily required to be completed after less than 15 weeks' attendance, £550;

(ii) subject to sub-paragraph (iii), in respect of courses at institutions which are neither maintained nor assisted by grants paid out of public funds, £1,050;

(iii) in the case of a course at the University of Buckingham £2,640 payable in four equal instalments of £660, in the case of a course at the Guildhall School of Music £4,055 payable in three instalments of £1,352, £1,352 and £1,351 and in the case of a course at Heythrop College £1,995 payable in three equal instalments of £665;

(iv) where during the year of a sandwich course any periods of full-time study are in aggregate less than 10 weeks, £550;

(v) where during the year of a course of initial training for teachers referred to in regulation 10(1)(d) any periods of full-time study are in aggregate less than 10 weeks, £550;

(vi) where during the year of an international course the periods of full-time study at the institution in the United Kingdom are in aggregate less than 10 weeks, £550;

(vii) in respect of the final year of a course referred to in paragraph (iii) which is ordinarily required to be completed before the first, the second or, in the case of a course at the University of Buckingham the third of the dates 1st January, 1st April, 1st July and 1st September which follow the beginning of that year, the first, the first two, or the first three of the instalments which would be payable respectively if this paragraph did not apply;

(viii) in respect of not more than one academic year of a course referred to in paragraphs (iv) or (vi) where the periods of full-time study at the institution in the United Kingdom are 10 weeks or more, but in respect of that year and any previous such years the aggregate of any one or two periods of attendance which are not periods of full-time study at the institution (disregarding intervening vacations) exceeds 30 weeks, or where the institution is the University of Oxford or Cambridge, 25 weeks, £550.

Regulations 18 and 20(2)

SCHEDULE 2 REQUIREMENTS

PART 1 ORDINARY MAINTENANCE

1.—(1) The requirements of the student referred to in regulation 18(1) (a) shall include his requirement for ordinary maintenance during—

(a) any period while he is attending the course; and

(b) the Christmas and Easter vacations;

and the amount of such requirement (“ordinary maintenance requirement”) shall be determined in accordance with this Part of this Schedule.

(2) Where a student’s ordinary maintenance requirements are different in respect of different parts of a year, his ordinary maintenance requirement for that year shall be the aggregate of the proportionate parts of those differing requirements.

2.—(1) This paragraph shall apply in the case of—

(a) any student who does not reside at his parents' home; and

(b) any student residing at his parents' home whose parents by reason of age, incapacity or otherwise cannot reasonably be expected to support him and in respect of whom the authority are satisfied that in all the circumstances the ordinary maintenance requirement specified herein would be appropriate.

(2) In the case of such a student the ordinary maintenance requirement shall be £2,045 except that—

(a) if he attends one of the following:

(i) a course at the University of London, or

(ii) a course at an institution which requires attendance for at least half the time in aggregate of any term of the academic year excluding vacations at a site within the area comprising the City of London and the Metropolitan Police District, or

(iii) a sandwich course at an institution which requires him to undertake work experience or a combination of work experience and study for at least half the time in aggregate of any term of the academic year excluding vacations at a site or sites within the area comprising the City of London and the Metropolitan Police District,

it shall be £2,510.

(b) if he attends for a period of at least eight weeks and as part of his course an overseas institution, it shall be … £2,920.

3.  In the case of any other student the ordinary maintenance requirement shall be £1,665.

PART 2 SUPPLEMENTARY MAINTENANCE ETC.

4.  The requirements referred to in regulation 18 shall include the student’s requirements—

(a) for supplementary maintenance in the cases and for the periods mentioned in paragraphs 5, 6 and 10; and

(b) in respect of such expenditure as is mentioned in paragraphs 7 to 9;

and the amount of any such requirement (“supplementary requirement”) shall be determined in accordance with this Part of this Schedule.

5.—(1) This paragraph shall apply in the case of a student who having, in any academic year, attended his course—

(a) in the case of a course provided at the University of Oxford or Cambridge, for a period of 25 weeks 3 days; or

(b) in the case of any other course, for a period of 30 weeks 3 days,

in that year attends a course so provided for a further period (“the excess period”).

(2) In respect of each week and any part of a week comprised in the excess period the supplementary requirement shall be—

(a) in the case of a student residing at his parents' home, £48;

(b) in the case of any other student, £71 except that—

(i) if he attends one of the following:

(aa) a course at the University of London, or

(bb) a course at an institution which requires attendance for at least half the time in aggregate of any term of the academic year excluding vacations at a site within the area comprising the City of London and the Metropolitan Police District, or

(cc) a sandwich course at an institution which requires him to undertake work experience or a combination of work experience and study for at least half the time in aggregate of any term of the academic year excluding vacations at a site or sites within the area comprising the City of London and the Metropolitan Police District,

it shall be £92;

(ii) if he attends for a period of at least eight weeks as part of his course an overseas institution, it shall be … £99.

6.—(1) This paragraph shall apply in the case of a student who attends his course for a period of not less than 45 weeks in any continuous period of 52 weeks.

(2) In respect of each aggregate period of a complete week for which he does not attend his course in the period of 52 weeks in question, the student’s supplementary requirement shall be determined in accordance with paragraph 5(2).

7.—(1) This paragraph shall apply in the case of a student who is obliged to incur reasonable expenditure—

(a) in the case of a student attending a course in medicine, dentistry or nursing, a necessary part of which is a period of study by way of clinical training, for the purpose of attending in connection with his course any hospital or other premises in the United Kingdom (not comprised in the institution) at which facilities for clinical training are provided, but not incurred for the purpose of residential study away from the institution;

(b) within or outside the United Kingdom for the purpose of attending for a period of at least eight weeks and as part of his course an overseas institution.

(2) The student’s supplementary requirement in respect of such expenditure shall be the amount of such expenditure less £270.

(3) For the purposes of this paragraph any reference to expenditure incurred for the purpose of attending an institution or period of study—

(a) includes expenditure both before and after so attending; and

(b) does not include any expenditure for a purpose specified in paragraph 9.

8.—(1) This paragraph shall apply in the case of a student who reasonably incurs any expenditure in insuring against liability for the cost of medical treatment provided outside the United Kingdom for any illness or bodily injury contracted or suffered during a period of study outside the United Kingdom which is part of the student’s course.

(2) The student’s supplementary requirement in respect of such expenditure shall be the amount reasonably incurred.

9.—(1) This paragraph shall apply in the case of a disabled student where the authority is satisfied that by reason of his disability he is obliged to incur additional expenditure in respect of his attendance at the course.

(2) The student’s supplementary requirements shall be such amounts as the authority consider appropriate—

(a) in respect of a non-medical personal helper not exceeding £11,280;

(b) in respect of major items of specialist equipment not exceeding £4,460 in total for the duration of his course;

(c) in respect of expenditure incurred—

(i) within the United Kingdom for the purposes of attending the institution;

(ii) within or outside the United Kingdom for the purpose of attending as part of his course an overseas institution;

in respect of any other expenditure including expenditure incurred for the purposes specified in paragraphs (a) and (b) which exceed the maxima specified therein not exceeding £1,490.

10.—(1) This paragraph shall apply in the case of a student—

(a) who is under the age of 21 on the first day of the course;

(b) in respect of whom a parental contribution is not applicable in accordance with Part II of Schedule 3 because he has pursuant to an order of a competent court been in such custody or care or has been provided with accommodation as described in paragraph 3(c) of that Schedule; and

(c) who in the opinion of the authority is subject to greater financial hardship by reason of having been in custody, care or having been provided with accommodation as mentioned in paragraph (b) than he would have been if he had not been in custody, care or having been provided with accommodation.

(2) The student’s supplementary requirement shall be such amount as the authority in all the circumstances consider appropriate not exceeding £100 for each week or part of a week which—

(a) falls within the longest vacation taken; and

(b) during no part of which week the student attends his course.

PART 3 MAINTENANCE OF DEPENDANTS

11.—(1) The requirements referred to in regulation 18(1)(a) shall include the student’s requirements for the maintenance of dependants during the year and the amount of any such requirement (“dependants requirement”) shall be determined in accordance with this Part of this Schedule.

(2) Where a student’s requirements for the maintenance of dependants are different in respect of different parts of a year, his dependants requirement for that year shall be the aggregate of the proportionate parts of those differing requirements.

12.—(1) In this Part of this Schedule—

“adult dependant” means, in relation to a student, an adult person dependent on the student not being his child, his spouse or a person living with him as his spouse or his former spouse, subject however to sub-paragraphs (2) and (3);

“child”, in relation to a student, includes a person adopted in pursuance of adoption proceedings, a step-child and any child for whom the student has parental responsibility and who is dependent on him;

“dependant” means, in relation to a student, his spouse, his dependent child for whom he or his spouse is in receipt of child tax credit under Part I of the Tax Credits Act 2002(2), or an adult dependant, subject, subject however to sub-paragraphs (2) and (3);

“income” means income for the year from all sources (reduced by income tax and social security contributions) but disregarding—

(a)

any pension, allowance or other benefit paid by reason of a disability or incapacity to which the person is subject;

(b)

child benefit payable under Part IX of the Social Security Contributions and Benefits Act 1992(3);

(c)

any allowance payable to his spouse by an adoption agency in accordance with regulations made under section 57A of the Adoption Act 1976(4);

(d)

any guardian’s allowance to which his spouse is entitled under section 77 of the Social Security Contributions and Benefits Act 1992;

(e)

in the case of a spouse with whom a child in the care of a local authority is boarded out, any payment made to him in pursuance of section 23 of the Children Act 1989(5);

(f)

any payments made to his spouse in pursuance of an order made under section 34 of the Children Act 1975(6), or under section 15 of and Schedule 1 to the Children Act 1989 or any assistance given by a local authority pursuant to section 24 of that Act, in respect of a person who is not the spouse’s child;

(g)

any child tax credit to which he is entitled under Part I of the Tax Credits Act 2002;

(h)

where the spouse holds an award in respect of a course of teacher training designated under regulation 10(1) (b) (iii), being a part-time course or a course which is partly full-time and partly part-time, the payments in respect of maintenance made to the spouse in pursuance of regulation 17(1) (b) or so much of those payments as related to the part-time part of the course;

(i)

where the spouse or the student make any recurrent payments which were previously made by the student in pursuance of an obligation incurred before the first year of the student’s course—

(i)

if, in the opinion of the authority, the obligation had been reasonably so incurred, an amount equal to the payment in question;

(ii)

if, in their opinion, only a lesser obligation could have been reasonably so incurred, such correspondingly lesser amount (if any) as appears to them appropriate;

“relevant award” means a statutory award in respect of a person’s attendance at—

(a)

a full-time course of higher education or a comparable course outside England and Wales;

(b)

a course designated under sub-paragraph (d) (ii) of regulation 10(1); or

(c)

the full-time part of a course designated under sub-paragraph (d) (iii) of regulation 10(1) which is partly full-time and partly part-time;

“spouse”, except in the definition above of adult dependant, shall not include a student’s spouse if they have ceased ordinarily to live together whether or not an order for their separation has been made by any court.

(2) A person, including the student’s spouse, shall not be treated as a dependant of the student during any period for which that person—

(a) holds a relevant award; or

(b) (save for the purposes of paragraph 15) is ordinarily living outside the United Kingdom.

(3) A person shall not be treated as a student’s adult dependant … if the person’s net income exceeds £3,280.

• …

13.—(1) Subject to the following sub-paragraphs the dependants requirement of a student shall in respect of each academic year be £2,280 in total for only one of the following—

(a) a spouse, or

(b) an adult dependant whose net income does not exceed £3,280.

(2) The amount of dependants requirement under sub-paragraph (1) shall be reduced or extinguished by the difference between—

(a) the aggregate of the net income of each of the student’s dependants; and

(b) where the student—

(i) has no dependent child, £1,000;

(ii) is not a lone parent and has one dependent child, £3,000;

(iii) is not a lone parent and has more than one dependent child, £4,000;

(iv) is a lone parent and has one dependent child, £4,000; or

(v) is a lone parent and has more than one dependent child, £5,000

provided the aggregate amount calculated under paragraph (a) of this sub-paragraph is greater than the amount applicable under paragraph (b) of this sub-paragraph.

(3) The dependants requirement of the student shall, subject to paragraphs 14 and 15 be—

(a) if the student’s spouse holds a statutory award and in calculating payments under it account is taken of the spouse’s dependants requirement, one half of the amount determined in accordance with sub-paragraphs (1) and (2);

(b) in any other case, the whole of the amount so determined.

• …

(4) Where the student —

(a) is entitled to dependants requirement under sub-paragraph (1) and has not made an election under paragraph (3) of Schedule 4 and he has one or more dependent children, in addition to any dependants requirement referred to in the preceding paragraphs he shall be entitled to receive the sum of £1,300;

(b) is entitled to receive dependants requirement under sub-paragraph (1) and has not made an election under paragraph (3) of Schedule 4 and has one or more dependent children, he shall be entitled to receive the sum of £ 1,300 less the amount up to a maximum of £1,250 by which the aggregate of the net income of each of the student’s dependants exceeds the amount applicable in paragraph 13(2)(b) provided such excess amount is less than £1,300.

14.—(1) Subject to the following sub-paragraphs where the student has not made an election under paragraph (3) of Schedule 4 and he or his spouse has elected not to receive the child care element of the working tax credit under Part I of the Tax Credits Act 2002(7), his dependants requirement shall in respect of each academic year be increased in respect of childcare costs for each dependent child where the childcare is provided by an approved or registered childcare provider, if—

(a) the child is under the age of 15 immediately before the beginning of the academic year; or

(b) the child has registered special educational needs within the meaning of the Education Act 1996(8) and is under the age of 17 immediately before the beginning of the academic year.

• …

(2) The dependants requirement for each week for which a student shall be eligible under sub-paragraph (1) is:

• …

  (a)

  for one dependent child, 85 per cent. of the costs of the childcare, subject to a maximum amount of £114.75, or

  (b)

  for two or more dependent children, 85 per cent. of the costs of the childcare, subject to a maximum amount of £170

  except that the student shall not be eligible for any such amount in respect of each week falling within the period between the end of the course and the end of the academic year in which the course ends.

• …

(3) Where the amount to be deducted from a student’s dependants requirement in accordance with paragraph 13(2) exceeds the amount calculated under paragraph 13(1) and dependants requirement is payable under paragraph 13(2) the amount of such dependants requirement shall be reduced or extinguished by the amount of the excess and if the excess is greater than is required to extinguish any dependants requirement payable under paragraph 13(2) any dependants requirement payable under paragraph 13(4) shall be reduced or extinguished by the amount of the remaining excess.

(4) Where the amount to be deducted from a student’s dependants requirement in accordance with paragraph 13(2) exceeds the amount of dependants requirement calculated under paragraph 13(1) and no dependants requirement is payable under sub-paragraph (2), any dependants requirement payable under paragraph 13(4) shall be reduced or extinguished by the amount of the excess.

(5) Where no amount is to be deducted from a dependants requirement in accordance with paragraph 13(2) because paragraph 13(1) does not apply and dependants requirement is payable under sub-paragraph (2) the amount so payable shall be reduced or extinguished by the difference between—

(a) the aggregate of the net income of each of the student’s dependants; and

(b) where the student—

(i) has no dependent child, £1,000;

(ii) is not a lone parent and has one dependent child, £3,000;

(iii) is not a lone parent and has more than one dependent child, £4,000;

(iv) is a lone parent and has one dependent child, £4,000; or

(v) is a lone parent and has more than one dependent child, £5,000

provided the aggregate amount calculated under paragraph (a) of this sub-paragraph is greater than the amount applicable under paragraph (b) of this sub-paragraph.

(6) If the difference calculated under sub-paragraph (5) exceeds the amount required to extinguish any dependants requirement payable under sub-paragraph (2) any dependants requirement payable under paragraph 13(4) shall be reduced or extinguished by the amount of the excess.

(7) Where no amount is to be deducted from a dependants requirement in accordance with paragraph 13(2) because paragraph 13(1) does not apply and no dependants requirement is payable under sub-paragraph (2) the amount of dependants requirement payable under 13(4) shall be reduced or extinguished by the difference between—

(a) the aggregate of the net income of each of the student’s dependants; and

(b) where the student—

(i) has no dependent child, £1,000;

(ii) is not a lone parent and has one dependent child, £3,000;

(iii) is not a lone parent and has more than one dependent child, £4,000;

(iv) is a lone parent and has one dependent child, £4,000; or

(v) is a lone parent and has more than one dependent child, £5,000

provided the aggregate amount calculated under paragraph (a) of this sub-paragraph is greater than the amount applicable under paragraph (b) of this sub-paragraph.

(8) If the student’s spouse holds a statutory award and if in calculating payments under it account is taken of the spouse’s dependants requirement, account is taken of his dependants, the amount of grant calculated under sub-paragraph (2) shall be reduced by one half.

• …

(9) In this paragraph—

“approved childcare provider” means a childcare provider within the meaning of the Tax Credit (New Category of Childcare Provider) Regulations 1999(9), who has been approved in accordance with those Regulations;

“registered childcare provider” means a person who acts as a child minder or provides day care and is registered within the meaning of section 79F of the Children Act 1989(10), (grant or refusal of registration of child minders and persons providing day care for young children).

…

15.—(1) This paragraph shall apply in the case of a student who maintains any dependant outside the United Kingdom.

(2) Notwithstanding anything in the foregoing paragraphs of this Part of this Schedule, the dependants requirement of the student shall be of such amount, if any, as the authority consider reasonable in all the circumstances, not exceeding the amount determined in accordance with those paragraphs.

PART 4 CONSTRUCTION OF PARTS 1 TO 3

16.  In this Schedule, any reference to the home of the student’s parents shall be construed, in the case of a student whose spouse attends a full-time course at any institution, as including a reference to the home of the parents of the student’s spouse.

17.  In this Schedule, except where the context otherwise requires, any reference to a requirement, expenditure or attendance in respect of which no period of time is specified shall be construed as a reference to a requirement, expenditure or attendance for the year.

Regulation 18

SCHEDULE 3 RESOURCES

PART 1 STUDENT'S INCOME

Calculation of student’s income

1.—(1) In calculating a student’s income for the purposes of regulation18(1)(b) there shall be taken into account his income (reduced by income tax and social security contributions) from all sources, and any payment referred to in paragraph (b), whether or not it is income, but there shall be disregarded the following—

(a) in a case not covered by paragraph (u), the first £900 of income of any description;

(b) the first £4,250 of any payment by way of—

(i) scholarship, studentship, exhibition, bursary, award, grant, allowance or benefit however described payable in connection with the student’s attendance on the course, otherwise than under the Act and regulations made under it; and

(ii) in the case of a student in gainful employment, by way of remuneration (reduced by income tax and social security contributions) paid in respect of any period for which he has leave of absence or is relieved of his normal duties for the purpose of attending the course;

(c) any grant to facilitate teacher training paid to the student under regulations made under section 50(1) of the Education (No.2) Act 1986(11) or any payment made in respect of the student’s training as a teacher by an institution to which grants, loans or other payments for that purpose are provided under section 5 of the Education Act 1994(12) or under section 65(3) of the Further and Higher Education Act 1992(13);

(d) in the case of a student for whose benefit any income is applied or any payments are required to be applied as described in paragraph 5(5) the whole of that income or those payments if a parental contribution ascertained in accordance with Part II or a spouse’s contribution ascertained in accordance with Part III is applicable (at whatever amount, including nil, that contribution is ascertained to be);

(e) any pension, allowance or other benefit paid by reason of a disability or incapacity to which the student is subject and any war widow’s or war widower’s pension;

(f) any bounty received as a reservist with the armed forces;

(g) remuneration for work done during any academic year of the student’s course;

(h) in the case of a student in whose case a parental contribution is by virtue of Part II of this Schedule applicable (at whatever amount, including nil, that contribution is ascertained to be) any payment which is made under covenant by a parent by reference to whose income that contribution falls to be ascertained;

(i) any payment made for a specific educational purpose otherwise than to meet such fees and such requirements for maintenance as are specified in Schedules 1 and 2;

(j) child benefit payable under Part IX of the Social Security Contributions and Benefits Act 1992(14);

(k) any allowance payable to the student by an adoption agency in accordance with regulations made under section 57A of the Adoption Act 1976(15);

(l) any guardian’s allowance to which he is entitled under section 77 of the Social Security Contributions and Benefits Act 1992;

(m) in the case of a student with whom a child in the care of a local authority is boarded out, any payment made to him in pursuance of section 23 of the Children Act 1989(16);

(n) any payments made to the student in pursuance of an order made under section 34 of the Children Act 1975(17) or under section 15 of and Schedule 1 to the Children Act 1989 in respect of a person who is not his child, or any assistance given by a local authority pursuant to section 24 of that Act;

(o) income support … under Part VII of the Social Security Contributions and Benefits Act 1992 or any child tax credit or working tax credit under Part I of the Tax Credits Act 2002;

(p) any housing benefit or community charge benefits granted to the student in pursuance of a statutory or local scheme under Part VII of the Social Security Contributions and Benefits Act 1992 or any council tax benefit granted to him in pursuance of a statutory or local scheme under that Act;

(q) in a case not covered by paragraph (u), the first £3,420 of any pension, allowance or other benefit payable by reason of the student’s old age, his retirement, the death of his spouse or parent or another person on whom he was wholly or mainly financially dependent, or by reason of his military or other public service;

(r) any payments made to the student under the action scheme of the European Community for the mobility of university students known as ERASMUS(18), the European Community programme for foreign language competence known as LINGUA(19) or the European Community programme known as LEONARDO DA VINCI(20);

(s) any payments made to the student out of access bursary funds or hardship funds paid to the institution at which he attends his course under section 65 of the Further and Higher Education Act 1992(21), or sections 73 and 74 of the Education (Scotland) Act 1980(22) or out of access funds under article 30 of the Education and Libraries (Northern Ireland) Order 1993(23) or article 5 of the Further Education (Northern Ireland) Order 1997(24);

(t) any payments made to the student for the maintenance of his child by virtue of any agreement, instrument or enactment;

(u) where a parental contribution does not apply because the student falls within paragraph 3 of this Schedule and a spouse’s contribution does not apply under Part III of this Schedule, the first £7,500 of income of any description, other than any sum treated as income under sub-paragraph (6).

(2) Where income may be disregarded under more than one of the sub-paragraphs of paragraph (1) it shall be disregarded under the sub-paragraph or sub-paragraphs which will result in the largest amount of the student’s income from all sources being disregarded under paragraph (1).

(3) Where the student is a European student and his income arises from sources or under legislation different from sources or legislation normally relevant to a person who is settled in the United Kingdom within the meaning of the Immigration Act 1971(25) his income shall not be disregarded in accordance with paragraph (1) but shall be disregarded to the extent necessary to ensure that he is treated no less favourably than a person in similar circumstances in receipt of similar income who is settled in the United Kingdom.

(4) Where the student makes any payment for the maintenance of his child or former spouse or person who lived with him as his spouse by virtue of any agreement, instrument or enactment, the amount of such payment shall be deducted in calculating his income for the purposes aforesaid.

(5) In the case of a student who makes any payment in pursuance of an obligation incurred before the first year of his course, in calculating his income for the purposes aforesaid there shall be deducted there from—

(a) if, in the opinion of the authority, the obligation had been reasonably so incurred, an amount equal to the payment in question;

(b) if, in their opinion, only a lesser obligation could have been reasonably so incurred, such correspondingly lesser amount (if any) as appears to them appropriate;

except that no deduction shall be made from the income of a married student where the student’s spouse is a dependant for the purpose of Part III of Schedule 2….

(6) In a case where the student is the parent or step-parent of an award holder in respect of whom a contribution is ascertained under Part II of this Schedule, so much of the amount (if any) by which the contribution is reduced under paragraph 4(3), (4), (5) or (6) as the authority consider just shall be treated as part of the student’s income for the purposes of regulation 18(1) (b).

(7) Where the student receives income in a currency other than sterling the value of the income shall be —

(a) if the student purchases sterling with the income the amount of sterling the student receives for it, and

(b) otherwise the amount of the sterling which the income would purchase using the rate for the month in which it is received published by the Office for National Statistics in “Financial Statistics”.

PART 2 PARENTAL CONTRIBUTION

Definitions and construction of Part 2

2.—(1) In this Part of this Schedule—

“child” includes a person adopted in pursuance of adoption proceedings and a step-child but, except in paragraph 4, does not include a child who holds a statutory award; and, except as otherwise provided by paragraph 5, “parent” shall be construed accordingly;

“financial year” means … the period of 12 months for which the income of the student’s parent is computed for the purposes of the income tax legislation which applies to it;

“gross income” has the meaning assigned to it by paragraph 5;

“income of the student’s parent” means the taxable income of the parent from all sources computed as for the purposes of the Income Tax Acts or as for the purposes of the income tax legislation of another member State of the European Community which applies to the parent’s income, or where the legislation of more than one member State applies in respect of the same period, as for the purposes of the legislation pursuant to which the authority consider that the parent will pay the largest amount of tax in that period, except as otherwise provided by paragraph 5 or 6;

“residual income” means, subject to sub-paragraph (2), the balance of gross income remaining in any year after the deductions specified in paragraph 6 have been made;

…

(2) Where, in a case not falling within paragraph 5(3) or (4), the authority are satisfied that the income of the parent in any financial year is as a result of some event beyond his control likely to be, and to continue after that year to be, not more than 85 per cent. of his income in the financial year preceding that year, they may, for the purpose of enabling the student to attend the course without hardship, ascertain the parental contribution for the year of his course in which that event occurred by taking as the residual income the average of the residual income for each of the financial years in which that year falls.

(3) Where the student’s parent satisfies the authority that his income is wholly or mainly derived from the profits of a business or profession carried on by him, then, if the authority and the parent so agree, any reference in this Part of this Schedule to a financial year shall be construed as a reference to a year ending with such date as appears to the authority expedient having regard to the accounts kept in respect of that business or profession and the periods covered thereby.

(4) Where a parent is in receipt of any income which does not form part of his taxable income by reason only that—

(a) he is not resident, ordinarily resident or domiciled in the United Kingdom, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State of the European Community, he is not resident, ordinarily resident or domiciled in that Member State,

(b) the income does not arise in the United Kingdom, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, does not arise in that member State, or

(c) the income arises from an office, service or employment, income from which is exempt from tax in pursuance of any legislation,

his income for the purposes of this Part of the Schedule shall be computed as though the income first mentioned in this sub-paragraph were part of his total income.

(5) Where the income of the student’s parent is computed as for the purposes of the income tax legislation of another member State —

(a) it shall be computed in the currency of that member State,

(b) the value of any deduction mentioned in paragraph 6(2) shall be the amount of that currency required to purchase the sterling value of the deduction, and

(c) the value of the sterling which the income of the student’s parent in that currency would purchase shall be determined, and shall constitute the income of the student’s parent for the purposes of this Part.

(6) The rate applied in determining the sterling value of another currency under sub-paragraph (5) shall be the rate for the month in which the last day of the financial year in question falls published by the Office for National Statistics in “Financial Statistics”.

Application of Part 2

3.  A parental contribution ascertained in accordance with this Part shall be applicable in the case of every student except—

(a) an independent student;

(b) a student in respect of whom the authority are satisfied either—

(i) that his parents cannot be found; or

(ii) that it is not reasonably practicable to get in touch with them;

(c) a student who pursuant to an order of a competent court has been in the custody or care of or has been provided with accommodation by—

(i) a state authority or agency, national, regional or local,

(ii) a voluntary or charitable organisation, or

(iii) any person who is not the student’s parent

throughout any three month period ending on a date on or after a date on which he attains the age of 16 and before the first day of his course; provided that he has not at any time from the beginning of the three month period to the first day of his course in fact been under the charge or control of his parents.

(d) a student whose parents are residing outside the European Community where the authority is satisfied either—

(i) that the assessment of a parental contribution would place those parents in jeopardy; or

(ii) that it would not be reasonably practicable for those parents to send any such contribution to the United Kingdom;

(e) where sub-paragraph (7) of paragraph 5 applies and the parent whom the authority considered the more appropriate for the purposes of that sub-paragraph has died.

Parental contribution

4.—(1) … In any case in which the parent's residual income is £20,970 or more the parental contribution shall subject to sub-paragraphs (2) to (6) be £45 with the addition of £1 for every complete £9.50 by which the residual income exceeds £20,970, reduced in each case in respect of each child of the parent (other than the student) who is wholly or mainly dependent on him on the first day of the year for which the contribution falls to be ascertained, by £83; and in any case in which the residual income is less than £20,970 the parental contribution shall be nil.

(2) For the purposes of this sub-paragraph—

(a) the amount or (where a contribution is ascertained in respect of more than one child of the student’s parent) the aggregate amount of the parental contribution shall in no case exceed £6,910; and

(b) where a contribution is ascertained in respect of more than one child of the student’s parent the aggregate of the contributions shall not exceed the contribution that would be ascertained if only one child held an award or, if that amount is different in respect of each child, the lower or (as the case may be) lowest such amount.

(3) For any year in which a statutory award other than one referred to in sub-paragraph (4) is held by—

(a) more than one child of the student's parent;

(b) the parent; or

(c) the student’s step-parent,

the parental contribution in respect of the student shall be such proportion of any contribution ascertained in accordance with this Part as the authority (after consultation with any other authority concerned) consider just….

(4) For any year in which a statutory award under these Regulations, the Education (Student Support) (No.2) Regulations 2002(26) or section 63 of the Health Services and Public Health Act 1968(27) but no other statutory award is held by—

(a) more than one child of the student’s parent;

(b) his parent; or

(c) his step-parent,

the parental contribution in respect of the eligible student shall subject to sub-paragraphs (5) and (6) be such proportion of any contribution ascertained in accordance with this Part as is equal to the proportion in respect of the other or (as the case may be) each other statutory award holder.

(5) Subject to sub-paragraph (6), if by apportioning the parental contribution in accordance with sub-paragraph (4) it would not all apply to statutory awards and one or more statutory award holders would hold any statutory award to which it could have applied but for the apportionment, the parental contribution shall instead apply—

(a) first to the statutory award of the or (as the case may be) each statutory award holder eligible for the smallest aggregate amount of statutory award to which the contribution may apply, and

(b) then to the statutory award of the remaining statutory award holder or, if there is more than one remaining statutory award holder, equally to the statutory award of each.

(6) If by apportioning the parental contribution equally in accordance with sub-paragraph (5) (b)—

(a) it would not all apply, and

(b) one or more remaining statutory award holders would hold any statutory award to which it could have applied but for the apportionment

it shall instead apply first to the statutory award of the or (as the case may be) each remaining statutory award holder eligible for the next smallest aggregate amount of statutory award to which it may apply until the balance can be apportioned equally without any remaining statutory award holder holding any statutory award to which it could have applied but for the apportionment.

Gross income

5.—(1) For the purposes of this paragraph “preceding financial year” means the financial year preceding the year in respect of which the resources of the student fall to be assessed and “current financial year” means the financial year which includes the first day of the year; provided that where references to a financial year fall to be construed in accordance with paragraph 2(3) as references to a year ending less than five months before the beginning of a year of the student’s course, “preceding financial year” shall mean the year last ending five or more months before the year in respect of which the resources of the student fall to be assessed and “current financial year” shall mean the year ending within those five months.

(2) Subject to the provisions of this paragraph, “gross income” means the income of the student’s parent in the preceding financial year or, for the purpose of calculating residual income under paragraph 2(2), in the financial year there mentioned.

(3) Where the authority are satisfied that the sterling value of the income of the student’s parent in the current financial year is likely to be not more than 85 per cent. of the sterling value of his income for the preceding financial year, they may for the purpose of calculating the parental contribution ascertain the gross income by reference to the current financial year; and in such case sub-paragraph (2) shall have effect, in relation to the year in respect of which the student’s resources fall to be assessed and, if the authority so determine, any subsequent year, as if the reference therein to the preceding financial year were a reference to the current financial year.

(4) Where—

(a) one of the student’s parents dies either before or during the year in respect of which the resources of the student fall to be ascertained (“the relevant year”); and

(b) that parent’s income has been or would be taken into account for the purpose of determining the parental contribution,

the parental contribution shall—

(c) where the parent dies before the relevant year, be determined by reference to the income of the surviving parent; or

(d) where the parent dies during the relevant year, be the aggregate of—

(i) the appropriate proportion of the contribution determined by reference to the income of both parents that is to say such proportion thereof as the part of the relevant year during which both parents were alive bears to the full year, subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 2; and

(ii) the appropriate proportion of the contribution determined by reference to the income of the surviving parent, that is to say such proportion thereof as the part of the relevant year remaining after the parent dies bears to the full year, subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 2.

(5) Without prejudice to sub-paragraph (6), where, in pursuance of any trust deed or other instrument or by virtue of any applicable legislation any income is applied by any person for or towards the maintenance, education or other benefit of the student or of any person dependent on the student’s parent, or payments made to his parent are required to be so applied, that income, or those payments, shall be treated as part of the gross income of the parent.

(6) Where any such benefit as is mentioned in paragraph l (l) (b) (i) of Part I of this Schedule is provided, by reason of the parent’s employment, for any member of his family or household who holds a statutory award (whether the student or some other such member) then that benefit shall not be treated as part of the gross income of the parent.

(7) Where the parents do not ordinarily live together throughout the year in respect of which the resources of the student fall to be ascertained (“the relevant year”), the parental contribution shall be determined by reference to the income of whichever parent the authority consider the more appropriate in the circumstances.

(8) Where the parents do not ordinarily live together for part only of the relevant year, the parental contribution shall be the aggregate of—

(a) the appropriate proportion of the contribution determined as provided in sub-paragraph (7), that is to say such proportion thereof as the part of the relevant year for which the parents do not so live together bears to the full year, subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 2; and

(b) the appropriate proportion of the contribution determined without regard to this sub-paragraph, that is to say, such proportion thereof as the part of the relevant year for which the parents so live together bears to the full year, subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 2.

(9) Where one of the student’s parents is his step-parent the parental contribution shall be ascertained by reference only to the income of the other parent.

Deductions

6.—(1) For the purposes of determining the income of a student’s parent (and, accordingly, the parent’s gross income), in computing his taxable income as for the purposes of the Income Tax Acts or for the purposes of the income tax legislation of another member State of the European Community any deductions which fall to be made or exemptions which are permitted—

(a) by way of personal reliefs provided for in Chapter I of Part VII of the Income and Corporation Taxes Act 1988(28), or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, any comparable personal reliefs;

(b) in respect of any payment made by the parent under covenant;

(c) in pursuance of any legislation or rule of law with the effect that payments which for the purposes of the law of the United Kingdom are treated as taxable income are not treated as taxable income; or

(d) without prejudice as aforesaid, of a kind mentioned in sub-paragraph (2),

shall not be made or permitted.

(2) For the purpose of determining a parent’s residual income there shall be deducted from his gross income—

(a) in respect of any person, other than a spouse, child or holder of a statutory award, dependent on the parent during the year for which the contribution falls to be ascertained, the amount by which £2,415 exceeds the income of that person in that year;

(b) the gross amount of any sums paid as interest (including interest on a mortgage) in respect of which relief is given under the Income Tax Acts in respect of a loan to the parent, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, the gross amount of any such sums in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

(c) the gross amount of any premium or sum relating to a pension (not being a premium payable under a policy of life insurance) in respect of which relief is given under section 266, 273, 619 or 639 of the Income and Corporation Taxes Act 1988, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

(d) where the parents ordinarily live together and one of them is incapacitated, so much of the cost in wages of domestic assistance as does not exceed £1,895;

(e) where a parent whose marriage has terminated either is gainfully employed or is incapacitated, so much of the cost in wages of domestic assistance as does not exceed £1,895;

(f) in respect of additional expenditure incurred by reason of the fact that the parent lives in a place where the cost of living is higher than that cost in the United Kingdom, such sum (if any) as the authority consider reasonable in all the circumstances;

(g) in the case of a parent who holds a statutory award, the amount by which the aggregate of his requirements for his ordinary maintenance (ascertained in accordance with Part I of Schedule 2) and £975 exceeds the sum payable in respect of maintenance in pursuance of that award;

(h) any payments made to the parent of the student in pursuance of an order of a competent court for the benefit of a child who is not his child of whom he has custody or care or for whom he provides accommodation;

(i) where the parent’s income is computed as for the purposes of the income tax legislation of another Member State, sums equivalent to any amounts which would not be treated as taxable income if that legislation made provision equivalent to the Income Tax Acts.

(3) In any case where income is computed as for the purposes of the Income Tax Acts by virtue of paragraph 2(4), there shall be deducted from the parent’s gross income sums equivalent to the deductions mentioned in paragraph (b), (c), or (d) of sub-paragraph (2), provided that any sums so deducted shall not exceed the deductions that would be made if the whole of the parent’s income were in fact total income for the purposes of the Income Tax Acts.

PART 3 SPOUSE'S CONTRIBUTION

Application of Part 3

7.  A spouse’s contribution ascertained in accordance with this Part shall be applicable in the case of every male student ordinarily living with his wife and every female student so living with her husband except—

(a) a student in whose case a parental contribution is applicable in accordance with Part II; and

(b) a student whose child holds an award in respect of which a parental contribution is applicable.

Spouse’s contribution

8.—(1) Subject to sub-paragraphs (3) and (4), Part II above, except paragraphs 3, 4(1), (2), (3)(a) and (c), 5(4), (7), (8) and (9), and 6(2)(e), shall apply with the necessary modifications for the ascertainment of the spouse’s contribution as it applies for the ascertainment of the parental contribution, references to the parent being construed as references to the student’s spouse and this Part shall be construed as one with the said Part II.

(2) The spouse’s contribution shall be in any case in which the residual income is £18,040 or more £45 with the addition of £1 for every complete £8 by which it exceeds £18,040, reduced in any such case by £83 in respect of each child of the student who is dependent on him or his spouse on the first day of the year for which the contribution falls to be ascertained; and in any case in which the residual income is less than £18,040 the spouse’s contribution shall be nil; provided that the amount of the spouse’s contribution shall in no case exceed £6,910.

(3) If the student marries during any year for which the contribution falls to be ascertained the contribution for that year shall be the fraction of the sum ascertained in accordance with the provisions of sub-paragraphs (1) and (2) of which the denominator is 52 and the numerator is the number of complete weeks between the date of the marriage and whichever is the earlier of the end of that year and the end of the course.

(4) If the student’s marriage terminates during any year for which the contribution falls to be ascertained the contribution for that year shall be the fraction of the sum ascertained in accordance with the provisions of sub-paragraphs (1) and (2) of which the denominator is 52 and the numerator is the number of complete weeks between the beginning of that year and the termination of the marriage.

Regulation 18(3)

SCHEDULE 4 SINGLE STUDENTS WTH DEPENDANTS

1.  This Schedule shall apply in the case of a student who does not ordinarily live with a spouse or with another person as a spouse.

2.—(1) This paragraph shall apply where the student has dependants within the meaning of Part III of Schedule 2.

(2) In the case of such a student—

(a) the sum to be disregarded under paragraph l (l) (a) of Schedule 3 shall be £1,960 instead of £900; or

(b) where he has made an election in accordance with paragraph 3, his requirements under paragraph 13 of … Schedule 2 shall be treated as increased by the sum of £1,125,

whichever is the most favourable to him (disregarding sub-paragraph (b) where, in pursuance of the following paragraph, he elects as mentioned therein).

• …

3.—(1) A student may elect not to receive an increase to the dependants requirement under paragraph 14 of Part III of Schedule 2 at any time before or during the year.

(2) No further election may be made following the revocation of an election under sub-paragraph (1).

Regulations 2, 4(3) and 20

SCHEDULE 5 SANDWICH COURSES

1.—(1) In this Schedule—

“sandwich course” means a course consisting of alternate periods of full-time study in an institution and periods of experience so organised that, taking the course as a whole, the student attends the periods of full-time study for an average of not less than 19 weeks in each year; and for the purpose of calculating his attendance the course shall be treated as beginning with the first period of full-time study and ending with the last such period;

“periods of experience” means, subject to sub-paragraph (2), periods of industrial, professional or commercial experience associated with full-time study at the institution but at a place outside the institution;

“sandwich year” means, as respects any student, any year of a sandwich course which includes both periods of full-time study in the institution and periods of experience, other than—

(a)

unpaid service in a hospital or in a public health service laboratory or with a Primary Care Trust in the United Kingdom;

(b)

unpaid service with a local authority in the United Kingdom acting in the exercise of their functions relating to health, welfare or the care of children and young persons or with a voluntary organisation providing facilities or carrying out activities of a like nature in the United Kingdom;

(c)

unpaid service in the prison or probation and aftercare service in the United Kingdom;

(d)

teaching practice;

(e)

unpaid research in an institution or, in the case of a student attending an overseas institution as part of his course, in an overseas institution;

(f)

such experience as aforesaid falling wholly within the usual periods of attendance at the institution in any year which do not comprise paid service or employment and either—

(i)

do not aggregate more than 6 weeks during that year; or

(ii)

fall within that year and another year and do not aggregate more than 12 weeks during the two years taken together, where that other year has not already been taken into account for the purposes hereof; or

(g)

unpaid service with—

(i)

a Health Authority or a Strategic Health Authority established pursuant to section 8 of the National Health Service Act 1977(29) or a Special Health Authority established pursuant to section 11 of that Act(30);

(ii)

a Health Board or a Special Health Board constituted under section 2 of the National Health Service (Scotland) Act 1978(31); or

(iii)

a Health and Social Services Board established under Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972(32);

“prescribed proportion” means the proportion which the number of weeks in the year for which the student in question attends the institution bears to 30, except that where that proportion is greater than the whole it means the whole;

“modified proportion” means the proportion which the number of weeks in the year in which there are no periods of experience for the student in question bears to 52.

(2) In the case of a student whose course includes the study of one or more modern languages for not less than one half of the time spent studying on the course and which includes periods of residence in a country whose language is a language of the course, “periods of experience” means such periods of residence during which the student is employed.

(3) For the purposes of determining the prescribed proportion or the modified proportion where the number of weeks in question is not a whole number, a day shall be reckoned as a seventh of a week.

(4) In the application of this Schedule to a student to whom Schedule 4 applies, references to Schedules 2 and 3 are to be construed as references to those Schedules as modified in accordance with Schedule 4.

(5) In the application of this Schedule to a student attending a course provided at the University of Oxford or of Cambridge the provisions thereof shall have effect as if—

(a) in the definition of “prescribed proportion” in sub-paragraph (1) for the number “30” there were substituted the number “25”; and

(b) in paragraph 3 for the words “30 weeks 3 days”, in both places where they occur, there were substituted the words “25 weeks 3 days”.

2.  For the purposes of calculating payments in respect of maintenance under regulation 17(1) (b) (ii) the prescribed proportion of the aggregate of the amounts specified in Schedule 2, paragraph 9 shall, as respects any sandwich year, be treated as the aggregate of the amounts so specified.

3.  The provisions of Schedule 2 shall, as respects any sandwich year, have effect subject to the following modifications—

(a) where the period of full-time study does not exceed 30 weeks 3 days, the student’s requirements for his ordinary maintenance shall be the prescribed proportion of the appropriate amount specified in Part I;

(b) where the period of full-time study exceeds 30 weeks 3 days, the student’s requirements for his ordinary and supplementary maintenance shall be the aggregate of the appropriate amount specified in Part I and the appropriate amount specified in paragraph 5 of Part II; and

(c) the student’s requirement for the maintenance of a dependant shall be the modified proportion of the sum specified in Part III except that where such a requirement falls to be increased under paragraph 16 it shall be increased by the prescribed proportion or the sum there specified.

4.  The provisions of Schedule 3 shall, as respects any sandwich year, have effect subject to the following modifications—

(a) the sum to be disregarded under paragraph 1(1) (a) of Part I shall be the prescribed proportion of £900;

(b) in calculating the student’s income,

(i) there shall be disregarded any payment made to him by his employer in respect of any period of experience;

(ii) the prescribed proportion of his income shall be treated as if it were the whole of his income;

(c) the amount of the parental contribution applicable to his case shall be the prescribed proportion of the contribution ascertained in accordance with Part II;

(d) the amount of the spouse’s contribution applicable to his case shall be the prescribed proportion of the contribution ascertained in accordance with Part III.

Regulation 6(1)

SCHEDULE 6 REVOCATIONS

(1)	(2)
Regulations revoked	References
The Education (Mandatory Awards) Regulations 2002	S.I. 2002/1330
The Education (Mandatory Awards) (Amendment) Regulations 2002	S.I. 2002/2089
The Education (Mandatory Awards) Amendment) (No.2) Regulations 2002	S.I. 2002/3060

(1)

SI 1999/2265.

(2)

2002.c. 21.

(3)

1992 c. 4.

(4)

1976 c. 36; section 57A was introduced by paragraph 25 of Schedule 10 to the Children Act 1989 (c. 41). The relevant instruments are S.I. 1991/2030 and 2742.

(5)

1989 c. 41.

(6)

1975 c. 72; a new section 34 was substituted by section 64 of the Domestic Proceedings and Magistrates' Courts Act 1978 (c. 22); the Act was repealed by the Children Act 1989 (c. 41), section 108(7) and Schedule 15.

(7)

2002 c. 21.

(8)

1996 c. 56, section 312.

(9)

S.I. 1999/3110, made in exercise of the powers conferred by sections 15(1) and 15(4) of the Tax Credits Act 1999 (c. 10).

(10)

1989 c. 41; section 79F was inserted by the Care Standards Act 2000(c. 14).

(11)

1986 c. 61; section 50 was amended by the Education Act 1993 (c. 35), section 278(6), Schedule 19, paragraph 102, Schedule 21 Part II, and by the Education Act 1994 (c. 30), section 13(2) to (4).

(12)

1994 c. 30.

(13)

1992 c. 13.

(14)

1992 c. 4; there are amendments which are not relevant.

(15)

1976 c. 36; section 57A was introduced by the Children Act 1989 (c. 41), Schedule 10, paragraph 25; the relevant instruments are S.I.1991/2030, 2130 and 2742.

(16)

1989 c. 41.

(17)

1975 c. 72; a new section 34 was substituted by Domestic Proceedings and Magistrates' Courts Act 1978 (c. 22), section 64; the Act was repealed by the Children Act 1989 (c. 41), section 108(7) and Schedule 15.

(18)

ERASMUS is part of the European Community action programme known as SOCRATES, OJ No.L87, 20.4.95, p.10.

(19)

LINGUA is part of the European Community action programme known as SOCRATES, OJ No.L87, 20.4.95, p.10.

(20)

OJ No.L340, 29.12.94, p.8.

(21)

1992 c. 13.

(22)

1980 c. 20.

(23)

S.I. 1993/2810 (N.I. 12).

(24)

S.I. 1997/1772 (N.I. 15).

(25)

1971 c. 77; amended by the British Nationality Act 1981(c. 61), section 39 and Schedule 4, by the Immigration Act 1988 (c. 14), sections1, 3, 4, 6 and 10 and the Schedule, by the Asylum and Immigration Appeals Act 1993 (c. 23), sections 10 to 12.

(26)

S.I. 2002/3200 as amended by S.I.2003/1065.

(27)

1968 c. 46.

(28)

1988 c. 1.

(29)

1977 c. 49; section 8 was substituted by the Health Authorities Act 1995 (c. 17), section 1(1) and the National Health Service Reform and Health Care Professions Act 2002 (c. 17), section 1.

(30)

Section 11 was amended by the Health Services Act 1980 (c. 53), Schedule 1, paragraph 31, the National Health Service and Community Care Act 1990 (c. 19), Schedule 10 and the Health Authorities Act 1995 (c. 17), Schedule 1, paragraph 2.

(31)

1978 c. 29; section 2 was amended by the Health and Social Security Adjudications Act 1983 (c. 41), Schedule 7, paragraph 1, and by the National Health Service and Community Care Act 1990 (c. 19), section 28 and Schedule 9, paragraph 19(1).

(32)

S.I. 1972/1265 (N.I. 14).