Part III Administration and Finance
Finance
72 Expenses of Secretary of State.
1
The expenses incurred by the Secretary of State in the exercise of his functions under this Act shall, in so far as they are not met under section 1(2) of the M1Reorganisation of Offices (Scotland) Act 1939, be defrayed out of money provided by Parliament.
2
Any sum by which any grants under this Act are increased by reason of the powers and duties conferred and imposed by the provisions of section 48 of this Act on education authorities shall be defrayed out of money provided by Parliament.
73 Power of Secretary of State to make grants to education authorities and others.
The Secretary of State may out of money provided by Parliament apply, in accordance with regulations made by him, such sums as he thinks necessary or expedient for any or all of the following purposes:—
a
the payment of grants to education authorities;
b
the payment of grants to universities;
c
the payment of grants to the managers of educational establishments;
d
the payment of grants to any other persons
ii
in respect of expenditure incurred or to be incurred by them for the purposes of, or in connection with the provision (or proposed provision) of, education or educational services.
e
the payment of grants to persons to assist the carrying out of educational research;
f
the payment of allowances F4or loansto or in respect of persons
F5i
undertaking; or
ii
who have undertaken
courses of education;
g
providing for any other educational expenditure approved by him.
73ZAF27Administration of certain sums
1
The Scottish Ministers may direct—
a
the Scottish Further and Higher Education Funding Council; or
b
any other body or person,
to administer any sums applied by the Scottish Ministers for a purpose referred to in paragraph (a), (c) or (f) of section 73 of this Act.
2
A body or person to whom a direction is given under subsection (1) above shall administer those sums—
a
in such manner and to such extent; and
b
subject to such conditions,
as the Scottish Ministers may in the direction specify.
3
The reference in subsection (1) above to a purpose referred to in paragraph (a), (c) or (f) of section 73 of this Act is a reference to that purpose only in so far as relating to support for persons—
a
undertaking; or
b
who have undertaken,
courses of education provided by fundable bodies.
4
In subsection (3) above, “fundable bodies” shall be construed in accordance with the Further and Higher Education (Scotland) Act 2005 (asp 6).
73AF6 Transfer or delegation of functions relating to student support.
1
If the Secretary of State so determines, any function exercisable by him by virtue of regulations made under section 73(f) of this Act shall, to such extent as is specified in his determination, be exercisable instead by such body or person as is so specified.
2
A person or body by whom any function is for the time being exercisable by virtue of subsection (1) above shall comply with any direction given by the Secretary of State as to the exercise of that function.
3
The Secretary of State may make arrangements for any person or body specified in the arrangements to exercise on his behalf, to such extent as is so specified, any function exercisable by him by virtue of regulations under section F2873(a), (c) or (f) of this Act (including any such functions as to appeals).
4
Any arrangements made under subsection (3) above shall not prevent the Secretary of State from exercising the function in question himself.
5
The Secretary of State may make provision for enabling appeals—
a
to be made with respect to such matters arising out of the exercise by any person or body of any function by virtue of subsection (1) or (3) above as he may determine; and
b
to be so made to a person or body appointed by him for that purpose.
6
The Secretary of State may pay to any person or body by whom any function is exercisable by virtue of subsection (1) or (3) above—
a
such amounts as he considers appropriate for the purpose of meeting expenditure incurred or to be incurred by that person or body—
i
ii
by way of administrative expenses,
in, or in connection with, the exercise of that function;
b
in the case of any such person, or of any body with which the Secretary of State has made arrangements under subsection (3) above, such remuneration as he may determine.
7
Any payment under subsection (6)(a) above may be made subject to such terms and conditions (including conditions as to repayment) as the Secretary of State may determine.
8
The Secretary of State may pay to any person or body appointed by him under subsection (5) such remuneration or administrative expenses (or both) as he may determine.
9
In relation to any function which, by virtue of subsection (1) or (3) above is exercisable to a specified extent, references in any other provision of this section to the exercise of that function are accordingly to its exercise to that extent.
F3110
The references in subsections (3) and (6)(a)(i) above to regulations under section 73(a) or (c) of this Act are references to those regulations only in so far as relating to support for persons—
a
undertaking; or
b
who have undertaken,
courses of education provided by fundable bodies.
11
In subsection (10) above, “fundable bodies” shall be construed in accordance with the Further and Higher Education (Scotland) Act 2005 (asp 6).
F773B Regulations relating to student loans.
1
This section applies in relation to regulations under paragraph (f) of section 73 of this Act made with respect to loans.
2
Regulations to which this section applies may make provision requiring such amounts as may be prescribed, payable under loans granted by virtue of such regulations, to be paid directly to institutions providing courses of education who have previously made payments of any prescribed description to persons F8undertaking such courses to whom such loans may be granted.
3
Regulations to which this section applies may make such provision as the Secretary of State considers necessary or expedient in connection with the recovery of amounts due from borrowers under loans granted by virtue of such regulations, including provision for—
a
imposing on employers, or (as the case may be) such other persons or bodies as may be prescribed, requirements with respect to—
i
the making of deductions in respect of amounts so due (or, in any prescribed circumstances, amounts assessed in accordance with the regulations to be so due) from emoluments payable to borrowers,
ii
the collection by other means of such amounts,
iii
the transmission of amounts so deducted or collected to the Secretary of State in accordance with directions given by him;
b
imposing on employers, or such other persons or bodies as may be prescribed, requirements with respect to the keeping and production of records for such purposes as may be prescribed;
c
imposing on borrowers requirements with respect to—
i
the provision of such information, and
ii
the keeping and production of such documents and records,
relating to their income as may be prescribed;
d
requiring the payment, by persons or bodies to whom the requirements imposed in pursuance of paragraphs (a) to (c) above apply, of—
i
penalties in cases of non-compliance with, or otherwise framed by reference to, such requirements, and
ii
interest in respect of periods when such penalties are due but unpaid;
e
requiring the payment by borrowers, in respect of periods when amounts due under their loans are unpaid, of—
i
interest (applied to such amounts at a rate calculated otherwise than in accordance with subsections (6) and (7) below), or
ii
both such interest and one or more surcharges (together with further interest in respect of periods when such surcharges are due but unpaid);
f
enabling the Secretary of State to require the reimbursement by borrowers of costs or expenses of any prescribed description incurred by him in connection with the recovery of unpaid amounts;
g
applying or extending with or without modification, for purposes connected with the recovery of amounts under regulations to which this section applies, any of the provisions of the Taxes Acts or of F26
“PAYE
regulations”
;
h
determining the priority as between deductions falling to be made by virtue of paragraph (a)(i) above and deductions falling to be made from emoluments payable to borrowers by virtue of other enactments (whenever passed);
i
modifying any enactment or instrument (whenever passed or made) so as to provide for the treatment, in connection with any calculation with respect to income (however defined), of amounts due from or payable to such persons under loans granted by virtue of regulations to which this section applies.
4
In subsection (3) above—
a
“employers” means persons who make payments of, or on account of, income assessable to income tax under Schedule E, and
b
“the Taxes Acts” has the same meaning as in the M2Taxes Management Act 1970.
5
Regulations to which this section applies may make provision for the payment, in respect of amounts overpaid by borrowers, of interest at such rate, and calculated in such manner, as may be determined by the Secretary of State from time to time.
6
A rate of interest, prescribed by regulations to which this section applies, to be borne by loans shall at no time exceed the rate for the time being specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the M3Consumer Credit Act 1974 (exemption of certain consumer credit agreements by reference to the rate of the total charge for credit).
7
Subject to subsection (6) above, regulations to which this section applies shall not prescribe a rate of interest to be borne by loans higher than that which the Secretary of State, having regard to such retail prices index as appears to him to be appropriate, is satisfied is required to maintain the value in real terms of the outstanding amounts of such loans.
8
Regulations to which this section applies may make provision, for the purpose of calculating the interest to be borne by loans, for repayments by borrowers to be treated as having been made or received on such date or dates as may be prescribed.
9
Regulations to which this section applies may prescribe requirements or other provisions which add to or otherwise modify, during the currency of a loan, requirements or other provisions (whether as to repayment or otherwise) which apply in relation to loans granted by virtue of such regulations.
10
Regulations to which this section applies may make provision for a borrower not to be liable to make any repayment in respect of a loan—
a
during such periods as may be prescribed from time to time, or
b
in such circumstances as may be prescribed,
including provision for the cancellation of any further such liability of the borrower in any such circumstances.
11
Regulations to which this section applies may make provision for appeals with respect to matters arising under such regulations (including provision for determining, or enabling the determination of, the procedure to be followed in connection with such appeals).
12
Regulations to which this section applies may, in relation to a borrower’s discharge under or by virtue of section 54 of the M4Bankruptcy (Scotland) Act 1985 or on an order being made under paragraph 11 of Schedule 4 to that Act, make provision for the treatment of any debt or liability to which a borrower is, or may become, subject in respect of sums received, or which he is entitled to receive, after the date of his sequestration.
13
Nothing in this section prejudices the generality of section 73(f) of this Act.
F973C Transitional provisions and savings on repeal of Education (Student Loans) Act 1990.
1
The Secretary of State may by regulations make such transitional provision and savings in connection with the repeal by the Teaching and Higher Education Act 1998 of the M5Education (Student Loans) Act 1990 (“the 1990 Act”) as he considers necessary or expedient including—
a
provision for any function which has been conferred under or by virtue of the 1990 Act to transfer to, or otherwise become exercisable by—
i
the Secretary of State, or
ii
such other person or body as may be prescribed,
to such extent as may be prescribed; and
b
provision for the transfer to the Secretary of State or any such other person or body of rights or liabilities arising under or by virtue of the 1990 Act.
2
Regulations made by virtue of paragraphs (a) and (b) of subsection (1) above may, in particular, provide for—
a
any such function to be exercisable in pursuance of such regulations in such modified form as may be prescribed;
b
the 1990 Act to have effect with such modifications as may be prescribed.
F1073D Provision as to maximum amounts of certain allowances.
1
This section applies to allowances payable by virtue of section 73(f) of this Act in respect of the fees charged in connection with F11. . ..
2
The Secretary of State may by order made by statutory instrument determine the maximum amount payable in any academic year of allowances to which this section applies in respect of such courses or classes of courses of higher education as may be so determined and, subject to subsection (3) below, a statutory instrument containing an order under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.
3
Where the Secretary of State has determined a maximum amount under subsection (2) above, he shall not make a further determination increasing that maximum amount under that subsection unless—
a
he is satisfied that the increase is no greater than is required to maintain the allowance’s value in real terms; or
b
a draft of the order containing the further determination has been laid before, and approved by a resolution of, each House of Parliament.
4
For the purposes of subsection (3)(a) above the Secretary of State shall have regard to such retail prices index as appears to him to be appropriate.
5
In subsection (2) above, “courses of higher education” means courses of higher education falling within section 38 of the M6Further and Higher Education (Scotland) Act 1992.
73EF12 Supply of information in connection with student loans.
1
This section applies to any information which is held—
a
by the Commissioners of Inland Revenue, or
b
by a person providing services to those Commissioners and in connection with the provision of those services.
2
Information to which this section applies may be supplied to—
a
the Secretary of State or the Department of Education for Northern Ireland,
b
any person or body acting on behalf of the Secretary of State or that Department under the delegation of functions provisions, or
c
any person or body by whom any function of the Secretary of State or that Department is for the time being exercisable to any extent by virtue of the transfer of functions provisions,
for the purpose of enabling or assisting the recipient to exercise any function in connection with the operation of the student loans scheme.
3
Information supplied under subsection (2) above shall not be supplied by the recipient to any other person or body unless it is supplied—
a
to a person or body to whom it could have been supplied under that subsection, or
b
for the purposes of any civil or criminal proceedings arising out of the student loans scheme.
4
Subsections (2) and (3) above extend only to the supply of information by or under the authority of the Commissioners of Inland Revenue.
5
This section does not limit the circumstances in which information may be supplied apart from this section.
6
In this section—
a
“ the delegation of functions provisions ” means section 73A(3) of this Act or section 23(4) of the Teaching and Higher Education Act 1998;
b
“ the transfer of functions provisions ” means section 73A(1) of this Act or section 23(1) of the Teaching and Higher Education Act 1998; and
c
“ the student loans scheme ” means the provisions of—
i
regulations under section 73(f) of this Act with respect to loans; or
ii
regulations under section 22 of the Teaching and Higher Education Act 1998 so far as having effect in relation to loans under that section;
and in this subsection any reference to a provision of this Act includes a reference to any corresponding Northern Ireland legislation.
74 Payment of grants to be subject to conditions.
1
The Secretary of State may by regulations make provision that any payment which he is required or authorised to make by or under this Act, except section 76 of this Act, shall be subject to such conditions as may be prescribed in F13or determined by him under the regulations, and that education authorities and other persons to whom such payments have been made shall comply with such requirements as may be specified in F14or determined by him under the regulations.
2
Where the Secretary of State is satisfied that the persons to whom any grant is payable under this Act are, by reason of the provisions of any trust deed or other instrument, unable to fulfil any condition or comply with any requirement imposed under this section, he may, after consultation with them, by order make such modifications of the said provisions as may be necessary for the purpose of enabling the said persons to fulfil that condition or comply with that requirement; and any such trust deed or other instrument shall, during such period as may be specified in the order, have effect subject to any modifications so made.
C175 Examination of accounts.
Save as may be otherwise prescribed, it shall be a condition of the payment by the Secretary of State of a grant to the managers of a school or other educational establishment not under the management of an education authority or to other persons providing educational services approved by the Secretary of State that the accounts of the income and expenditure of such managers or persons in respect of such school, educational establishment or service shall be set out according to a form prescribed by the Secretary of State and shall together with the relative vouchers and other documents be submitted for examination to the Secretary of State.
75AF15 Assisted places at grant-aided and independent schools.
1
F16The Secretary of State shall, subject to subsections (1A) and (1B) below, operate a scheme whereby—
a
participating schools remit fees that would otherwise be chargeable in respect of pupils admitted to assisted places under the scheme; and
b
the Secretary of State reimburses the schools for the fees that are remitted.
F171A
The Secretary of State shall operate a scheme such as is described in subsection (1) above only in relation to any pupil admitted to an assisted place under such a scheme prior to the beginning of the first term of the 1997-98 school year where the pupil will be in attendance at the school concerned—
a
at the beginning of that term; or
b
after the beginning of that term but before the end of that school year, and where it appears to the Secretary of State that it is reasonable, in view of any particular circumstances relating to that pupil, that he should be permitted to take advantage of that place after the beginning of that term,
and, for the purposes of this section, “ 1997-98 school year ” means the period of twelve months beginning on 1st August 1997.
1B
A pupil holding an assisted place who is receiving primary education during the 1997-98 school year shall cease to hold that place—
a
at the end of the school year in which he completes his primary education; or
b
if the Secretary of State, where he is satisfied that it is reasonable to do so in view of any particular circumstances relating to that pupil, decides that he should continue to hold that place for a further period during which he receives secondary education, at the end of that period.
F182
In this section references to a participating school are references to any grant-aided or independent school providing secondary education which the Secretary of State has determined, prior to the coming into force of this subsection, to be a participating school for the purposes of the scheme.
3
A determination under subsection (2) above—
a
shall state the maximum annual amount allocated by the Secretary of State to the school under the scheme including the maximum annual amount so allocated for the purposes of section 75B of this Act; and
b
may contain such conditions as the Secretary of State thinks fit in addition to those prescribed under subsection (9) below.
F194
The Secretary of State may alter—
a
the maximum annual amount referred to in subsection (3)(a) above; or
b
the conditions referred to in subsection (3)(b) above,
by written notification to the school concerned.
5
A participating school shall comply with any conditions contained in a determination under subsection (2) above and with any condition or obligation prescribed under subsection (9) below.
F206
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
The fees in relation to which the scheme is to have effect shall be—
a
tuition and other fees the payment of which is a condition of attendance at a participating school but excluding—
i
boarding fees; and
ii
such other charges, if any, as may be prescribed by regulations; and
b
entrance fees for public examinations paid by a participating school in respect of candidates from the school.
8
If the Secretary of State is of the opinion that any fee which falls to be remitted in whole or in part under a scheme established and operated under this section is excessive, he may substitute for such fee such other amount as he considers appropriate.
9
The Secretary of State shall by regulations prescribe—
F21a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F21b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
the conditions subject to which, the extent to which, and the arrangements in accordance with which, fees are to be remitted by participating schools;
d
the time and manner in which participating schools are to claim and receive reimbursements from the Secretary of State;
e
conditions to be complied with by participating schools with respect to F22. . . the fees to be charged, the keeping and auditing of accounts and the furnishing of information to the Secretary of State; and
f
such other matters as appear to him to be requisite for the purposes of the scheme.
F239A
Regulations under this section may—
a
provide for the discharge of any future liabilities of the Secretary of State to make reimbursements of fees by way of lump sum payments; F24. . .
b
provide for the Secretary of State, in a case where a participating school—
i
merges with another school;
ii
closes (whether wholly or in part); or
iii
notifies the Secretary of State that it no longer wishes to provide assisted places,
to authorise the new school or, as the case may be, any other participating school to provide any assisted places which the participating school first mentioned was authorised to provide; and a new school authorised to provide assisted places under regulations made under this section shall be treated for the purposes of this section and section 75B of this Act as if a determination had been made in respect of it under subsection (2) above F25;and
c
provide for the Secretary of State, in a case where he is satisfied that it is reasonable to do so in view of any particular circumstances relating to a pupil who holds (or has, at any time since the beginning of the first term of the 1997-98 school year, held) an assisted place at a school under a scheme operated by virtue of subsection (1) above, to authorise another school which is, or is treated as, a participating school to provide for the pupil under such a scheme the assisted place which the first-mentioned school was authorised to provide.
9B
Without prejudice to his duty to operate a scheme under subsection (1) above in respect of pupils such as are mentioned in subsection (1A) above, the Secretary of State may by regulations make such provision as he considers necessary for or in relation to the ending of the scheme.
9C
Regulations made under this section or section 75B of this Act may make different provision for different cases, circumstances or areas and may contain such incidental, supplemental, saving or transitional provisions as the Secretary of State thinks fit.
10
Regulations under subsection (9) above may authorise the Secretary of State to make provision for any purpose specified in the regulations.
11
Before making regulations under subsection (9) above the Secretary of State shall consult such bodies as appear to him to be appropriate and to be representative of participating schools.
12
Regulations made under subsection (9)(c) above shall be reviewed by the Secretary of State in consultation with such bodies as appear to him to be appropriate and to be representative of participating schools—
a
not later than two years after the date on which the first such regulations are made; and
b
thereafter at intervals not exceeding two years.
13
Except where the context otherwise requires, references in this section and section 75B of this Act to a school include references to the proprietors and managers of the school; and references in this section to an independent school are references to an independent school which is—
a
a registered school; and
b
conducted only for charitable purposes within the meaning of section 122(1) of this Act.
75B Incidental expenses of and provision for pupils holding assisted places.
1
The Secretary of State may by regulations require or enable or make provision for requiring or enabling any school participating in the scheme referred to in section 75A of this Act to make grants in respect of such expenses, including such travelling expenses, and to remit such charges, as may be specified in the regulations and to make such provision of meals or other refreshment or of facilities for the consumption of meals or other refreshment and such provision of clothing as the school making the provision considers appropriate, being expenses, charges or provision in respect of matters incidental to or arising out of the attendance at the school of pupils holding assisted places under the scheme.
2
Regulations made under this section may require or enable or make provision for requiring or enabling any school providing meals or other refreshment under subsection (1) above to make such charges as it thinks fit for any such meal or other refreshment except where it is provided by virtue of subsection (4) below.
3
Regulations under this section shall provide that, within the maximum amount stated under section 75A(3) of this Act, any amounts granted or remitted by a school and expenditure incurred by them by or under the regulations shall be reimbursed to the school by the Secretary of State.
4
The Secretary of State shall exercise his power to make regulations under this section so as to ensure that, in relation to any pupil whose parents are in receipt of supplementary benefit or family income supplement, such provision is made for that pupil in the middle of the day as appears to the school to be requisite.
5
Regulations under this section may in particular prescribe—
a
the conditions subject to which, the extent to which, and the arrangements in accordance with which, grants and remissions are to be made and meals, other refreshment, facilities for the consumption thereof and clothing are to be provided;
b
whether a charge is to be remitted in whole or in such part as may be prescribed in the regulations;
c
the time and manner in which schools are to claim and receive reimbursement from the Secretary of State.
6
Regulations under this section may authorise the Secretary of State to make provision for any purpose specified in the regulations.
76 Industrial scholarships.
1
The Secretary of State may award industrial scholarships or make payments to any other person in respect of the award of such scholarships by that person.
2
In this section “industrial scholarships” means scholarships (however described) tenable by persons undertaking full-time courses of higher education provided by a university, college or other institution in the United Kingdom, being courses which appears to the Secretary of State or, as the case may be, the person awarding the scholarships to be relevant to a career in industry.
3
In subsection (2) above the reference to a full-time course includes a reference to a course consisting of alternate periods of—
a
full-time study in the university, college or institution in question; and
b
associated industrial, professional or commercial experience;
and the reference in that subsection to a course provided by a university, college or institution in the United Kingdom includes a reference to a course provided by such a university, college or institution in conjunction with a university, college or other institution in another country.