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The Social Security (Treatment of Postgraduate Master’s Degree Loans and Special Support Loans) (Amendment) Regulations 2016

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EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Income Support (General) Regulations 1987 (S.I.1987/1967), the Jobseeker’s Allowance Regulations 1996 (S.I. 1996/207), the Housing Benefit Regulations 2006 (S.I.2006/213), the Employment and Support Allowance Regulations 2008 (S.I. 2008/794) and the Universal Credit Regulations 2013 (S.I. 2013/376).

In particular, the amendments at regulations 2(2) to (4) and (6), 3(2) to (4) and (6), 4(2) to (4) and (6), 5(2) to (4) and (6) and 6 provide that 30 per cent. of a loan paid by the Department for Business, Innovation and Skills to postgraduate students (“a postgraduate master’s degree loan”) is to be taken into account in calculating a student’s income in determining their entitlements to benefits under those Regulations. They also provide that the student is deemed to possess that amount of such a loan where the student could have acquired it but has not taken reasonable steps to do so.

In relation to universal credit, these Regulations (regulation 6(5)) also provide that persons in receipt of a postgraduate master’s degree loan are not to be regarded as having student income where a postgraduate master’s degree loan is paid to them in respect of a course which is not a full-time course. Such persons would therefore be subject to work-related requirements in relation to their entitlement to universal credit.

The amendments at regulations 2(5), 3(5), 4(5) and 5(5) provide that a special support loan to defray the cost of books, equipment, travel or childcare incurred for the purpose of attending a designated course, is not to be taken into account in calculating a student’s income in determining entitlement to income support, jobseeker’s allowance, housing benefit and employment and support allowance.

An impact assessment has not been produced for this instrument as it has no impact on business or civil society organisations.

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