PART VIII INCOME AND CAPITAL

Chapter IXF1Students

Interpretation130.

In this Chapter, unless the context otherwise requires—

  • F2“academic year” means the period of twelve months beginning on 1st January, 1st April, 1st July or 1st September according to whether the course in question begins in the winter, the spring, the summer or the autumn respectively but if students are required to begin attending the course during August or September and to continue attending through the autumn, the academic year of the course shall be considered to begin in the autumn rather than the summer;

  • F3“access funds" means—

    1. (a)

      grants made under section F468 of the Further and Higher Education Act 1992 F5... F6for the purpose of providing funds on a discretionary basis to be paid to students;

    1. (b)

      grants made under sections 73(a) and (c) and 74(1) of the Education (Scotland) Act 1980; F7...

    1. (c)

      grants made under Article 30 of the Education and Libraries (Northern Ireland) Order 1993, or grants, loans or other payments made under Article 5 of the Further Education (Northern Ireland) Order 1997 in each case being grants, or grants, loans or other payments as the case may be, made for the purpose of assisting students in financial difficultiesF8...;

    2. (d)

      F9 discretionary payments, known as “learner support funds”, which are made available to students in further education by institutions out of funds provided by the F10F11Young People’s Learning Agency for England under sections 61 and 62 of the Apprenticeships, Skills, Children and Learning Act 2009 F11Secretary of State under section 14 of the Education Act 2002 or the Chief Executive of Skills Funding under sections 100 and 101 of F12that Act F12the Apprenticeships, Skills, Children and Learning Act 2009 F13or;

    3. (e)

      F13Financial Contingency Funds made available by the F14Welsh Ministers;

  • F15“contribution” means—

    1. (a)

      any contribution in respect of the income of a student or any person which the Secretary of State, the Scottish Ministers or an education authority takes into account in ascertaining the amount of a student's grant or student loan; or

    2. (b)

      any sums, which in determining the amount of a student's allowance or bursary in Scotland under the Education (Scotland) Act 1980, the Scottish Ministers or education authority takes into account being sums which the Scottish Ministers or education authority consider that it is reasonable for the following persons to contribute towards the holder's expenses—

      1. (i)

        the holder of the allowance or bursary;

      2. (ii)

        the holder's parents;

      3. (iii)

        the holder's parent's spouse, civil partner or a person ordinarily living with the holder's parent as if he or she were the spouse or civil partner of that parent; or

      4. (iv)

        the holder's spouse or civil partner;

  • “covenant income" means the income payable to a student under a deed of covenant by a person whose income is, or is likely to be, taken into account in assessing the student’s grant or award;

  • “education authority" means a government department, F16a local authority as defined in section 579 of the Education Act 1996F17, a local education authority as defined in section 123 of the Local Government (Scotland) Act 1973F18, an education and library board established under article 3 of the Education and Libraries (Northern Ireland) Order 1986F19, any body which is a research council for the purposes of the Science and Technology Act 1965F20 or any analogous government department, authority, board or body, of the Channel Islands, Isle of Man or any other country outside Great Britain;

  • F21“grant" (except in the definition of “access funds") means any kind of educational grant or award and includes any scholarship, studentship, exhibition, allowance or bursary but does not include a payment from access funds F22or any payment to which paragraph 12 of Schedule 7 or paragraph 52 of Schedule 8 applies;

  • “grant income" means–

    1. (a)

      any income by way of a grant;

    2. (b)

      in the case of a student other than one to whom sub-paragraph (c) refers, any contribution that has been taken into account whether or not it has been paid;

    3. (c)

      in the case of a student who satisfies the additional conditions for a disability premium in paragraph 14 of Schedule 1 (applicable amounts), any contribution which has been taken into account and which has been paid,

    and any such contribution which is paid by way of a covenant shall be treated as part of the student’s grant income;

  • F23...

  • F24“last day of the course” means the date on which the last day of the final academic term falls in respect of the course in which the student is enrolled;

  • F25“periods of experience” means periods of work experience which form part of a sandwich course;

  • “standard maintenance grant" means–

    1. (a)

      except where paragraph (b) or (c) applies, in the case of a student attending F26or undertaking a course of study at the University of London or an establishment within the area comprising the City of London and the Metropolitan Police District, the amount specified for the time being in paragraph 2(2)(a) of Schedule 2 to the Education (Mandatory Awards) Regulations 1995 (“the 1995 regulations") for such a student;

    2. (b)

      except where paragraph (c) applies, in the case of a student residing at his parents’ home, the amount specified in paragraph 3(2) thereof;

    3. (c)

      F27in the case of a student receiving an allowance or bursary under the Education (Scotland) Act 1980, the amount of money specified as the “standard maintenance allowance” for the relevant year appropriate for the student set out in the Student Support in Scotland Guide issued by the Student Awards Agency for Scotland, or its nearest equivalent in the case of a bursary provided by a college of further education or a local education authorityF28...;

    4. (d)

      in any other case, the amount specified in paragraph 2(2) of the 1995 regulations other than in sub-paragraph (a) or (b) thereof;

  • F29...

  • F30“student loan" means a loan towards a student’s maintenance pursuant to any regulations made under section 22 of the Teaching and Higher Education Act 1998, section 73 of the Education (Scotland) Act 1980 or Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 F31and shall include, in Scotland, a young student’s bursary paid under regulation 4(1)(c) of the Students’ Allowances (Scotland) Regulations 1999;

  • F32...

Calculation of grant income131.

(1)

The amount of a student’s grant income to be taken into account shall, subject to paragraphs F33(2) and (3), be the whole of his grant income.

(2)

There shall be disregarded from the amount of a student’s grant income any payment—

(a)

intended to meet tuition fees or examination fees;

(b)

intended to meet additional expenditure incurred by a disabled student in respect of his attendance on a course;

(c)

intended to meet additional expenditure connected with term time residential study away from the student’s educational establishment;

(d)

on account of the student maintaining a home at a place other than that at which he resides while attending his course but only to the extent that his rent is not met by housing benefit;

(e)

on account of any other person but only if that person is residing outside the United Kingdom and there is no applicable amount in respect of him;

(f)

intended to meet the cost of books and equipment F34... F35...

(g)

intended to meet travel expenses incurred as a result of his attendance on the course.

F36(h)

intended for the maintenance F37... of a child dependent.

F38(i)

intended for the child care costs of a child dependant.

F39(j)

of higher education bursary for care leavers made under Part III of the Children Act 1989.

F40(3)

Where a student does not have a student loan and is not treated as possessing such a loan, there shall be excluded from the student’s grant income—

(a)

the sum of F41£303 per academic year in respect of travel costs; and

(b)

F42the sum of F43£390 F44per academic year towards the costs of books and equipment,

whether or not any such costs are incurred.

F45(3A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F46(3A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

F47Subject to paragraph (5A), a student’s grant income except for any amount intended for the maintenance of F48adult dependants under Part III of Schedule 2 to the Education (Mandatory Awards) Regulations 1999F49, or intended for an older student under Part IV of that Schedule, shall be apportioned—

(a)

subject to paragraph (6), in a case where it is attributable to the period of study, equally between the weeks F50in the period beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of the period of study and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period of study;

(b)

in any other case, equally between the weeks in the period F51beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of the period for which it is payable and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period for which it is payable.

(5)

F52Any grant paid under section 63(6) of the Health Services and Public Health Act 1968 (grants in respect of the provision of instruction to officers of hospital authorities) and any amount intended for the maintenance of F53dependants F53an adult dependant F54or for an older student under the provisions referred to in paragraph (4) shall be apportioned equally over a period of 52 weeks or, if there are 53 benefit weeks (including part-weeks) in the year, 53.

F55(5A)

F56In a case where a student is in receipt of a student loan or where he could have acquired a student loan by taking reasonable steps but had not done so, any amount intended for the maintenance of F57dependants F57an adult dependant under provisions other than those referred to in paragraphs (4) and (5), shall be apportioned over the same period as the student’s loan is apportioned orF58, as the case may be, would have been apportioned.

(6)

In the case of a student on a sandwich course, any periods of experience within the period of study shall be excluded and the student’s grant income shall be apportioned equally between F59the weeks in the period beginning with the benefit week, the first day of which immediately follows the last day of the period of experience and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period of study.

Calculation of covenant income where a contribution is assessed132.

(1)

Where a student is in receipt of income by way of a grant during a period of study and a contribution has been assessed, the amount of his covenant income to be taken into account for that period and any summer vacation immediately following shall be the whole amount of his covenant income less, subject to paragraph (3), the amount of the contribution.

(2)

The weekly amount of the student’s covenant income shall be determined–

(a)

by dividing the amount of income which falls to be taken into account under paragraph (1) by 52 or, if there are 53 benefit weeks (including part-weeks) in the year, 53; and

(b)

by disregarding £5 from the resulting amount.

(3)

For the purposes of paragraph (1), the contribution shall be treated as increased by the amount, if any, by which the amount excluded under regulation 131(2)(g) falls short of the amount for the time being specified in paragraph 7(4)(i) of Schedule 2 to the Education (Mandatory Awards) Regulations 1995 (travel expenditure).

Covenant income where no grant income or no contribution is assessed133.

(1)

Where a student is not in receipt of income by way of a grant the amount of his covenant income shall be calculated as follows—

(a)

any sums intended for any expenditure specified in regulation 131(2)(a) to (e), necessary as a result of his attendance on the course, shall be disregarded;

(b)

any covenant income, up to the amount of the standard maintenance grant, which is not so disregarded, shall be apportioned equally between the weeks of the period of study and there shall be disregarded from the covenant income to be so apportioned the amount which would have been disregarded under regulation 131(2)(f) and (g) and (3) had the student been in receipt of the standard maintenance grant;

(c)

the balance, if any, shall be divided by 52 or, if there are 53 benefit weeks (including part-weeks) in the year, 53 and treated as weekly income of which £5 shall be disregarded.

(2)

Where a student is in receipt of income by way of a grant and no contribution has been assessed, the amount of his covenant income shall be calculated in accordance with paragraph (1), except that—

(a)

the value of the standard maintenance grant shall be abated by the amount of his grant income less an amount equal to the amount of any sums disregarded under regulation 131(2)(a) to (e); and

(b)

the amount to be disregarded under paragraph (1)(b) shall be abated by an amount equal to the amount of any sums disregarded under regulation 131(2)(f) and (g) and (3).

Relationship with amounts to be disregarded under Schedule 7134.

No part of a student’s covenant income or grant income shall be disregarded under paragraph 15 of Schedule 7 (charitable and voluntary payments)F60....

Other amounts to be disregarded135.

(1)

For the purposes of ascertaining income other than grant income, covenant income, and loans treated as income in accordance with regulation 136, any amounts intended for any expenditure specified in regulation 131(2) (calculation of grant income) necessary as a result of the student’s attendance on the course shall be disregarded but only if, and to the extent that, the necessary expenditure exceeds or is likely to exceed the amount of the sums disregarded under regulation 131(2) and (3), 132(3) F61, 133(1)(a) or (b) and 136(5) (calculation of grant income, covenant income and treatment of student loans).

(2)

Where a claim is made in respect of any period in the normal summer vacation and any income is payable under a deed of covenant which commences or takes effect after the first day of that vacation, that income shall be disregarded.

Treatment of student loansF62136.

(1)

A student loan shall be treated as incomeF63....

F64(1A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(2)

In calculating the weekly amount of the loan to be taken into account as income—

(a)

F66in respect of a course that is of a single academic year’s duration or less, a loan which is payable in respect of that period shall be apportioned equally between the weeks in the period beginning with—

(i)

except in a case where (ii) below applies, the benefit week, the first day of which coincides with, or immediately follows, the first day of the single academic year;

(ii)

where the student is required to start attending the course in August or where the course is of less than an academic year’s duration, the benefit week, the first day of which coincides with, or immediately follows, the first day of the course,

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the course;

(aa)

F67in respect of an academic year of a course which starts other than on 1st September, a loan which is payable in respect of that academic year shall be apportioned equally between the weeks in the period beginning with the benefit weekF68, the first day of which coincides with, or immediately follows, the first day of that academic year and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of that academic year but excluding any benefit weeks falling entirely within the quarter during which, in the opinion of the Secretary of State, the longest of any vacation is taken and for the purposes of this sub-paragraph, “quarter” shall have the same meaning as for the purposes of the Education (Student Support) Regulations 2001;

(b)

in respect of the final academic year of a course (not being a course of a single year’s duration), a loan which is payable in respect of that final academic year shall be apportioned equally between the weeks in the period beginning withF69...—

(i)

F70except in a case where (ii) below applies, the benefit week, the first day of which coincides with, or immediately follows, the first day of that academic year;

(ii)

F70where the final academic year starts on 1st September, the benefit week, the first day of which coincides with, or immediately follows, the earlier of 1st September or the first day of the autumn term;

and ending with F71the benefit week, the last day of which coincides with, or immediately precedes, the last day of the course;

(c)

in any other case, the loan shall be apportioned equally between the weeks in the period beginning with the earlier of—

(i)

the first day of the first benefit week in September; or

(ii)

F72the benefit week, the first day of which coincides with, or immediately follows, the first day of the autumn term,

and ending with F73the benefit week, the last day of which coincides with, or immediately precedes, the last day of June,

and, in all cases, from the weekly amount so apportioned there shall be disregarded £10.

F74(3)

A student shall be treated as possessing a student loan in respect of an academic year where—

(a)

a student loan has been made to him in respect of that year; or

(b)

he could acquire such a loan in respect of that year by taking reasonable steps to do so.

(4)

Where a student is treated as possessing a student loan under paragraph (3), the amount of the student loan to be taken into account as income shall be, subject to paragraph (5)—

(a)

in the case of a student to whom a student loan is made in respect of an academic year, a sum equal to the maximum student loan he is able to acquire in respect of that year by taking reasonable steps to do so and either—

(i)

in the case of a student other than one to whom head (ii) refers, any contribution whether or not it has been paid to him; or

(ii)

in the case of a student who satisfies the additional conditions for a disability premium specified in paragraph 14 of Schedule 1 (applicable amounts), any contribution which has actually been paid to him;

(b)

n the case of a student to whom a student loan is not made in respect of an academic year, the maximum student loan that would be made to the student if—

(i)

he took all reasonable steps to obtain the maximum student loan he is able to acquire in respect of that year; and

(ii)

no deduction in that loan was made by virtue of the application of a means test.

(5)

There shall be deducted from the amount of income taken into account under paragraph (4)—

(a)

the sum of F75£303 F76per academic year in respect of travel costs; and

(b)

the sum of F77£390 F78per academic year towards the costs of books and equipment,

whether or not any such costs are incurred.

F79Treatment of payments from access funds136A.

(1)

This regulation applies to payments from access funds that are not payments to which regulation 138(2) or (3) (income treated as capital) applies.

(2)

A payment from access funds, other than a payment to which paragraph (3) of this regulation applies, shall be disregarded as income.

(3)

Subject to paragraph (4) of this regulation and paragraph 38 of Schedule 7, any payments from access funds which are intended and used for food, ordinary clothing or footwearF80..., household fuel, rent for which housing benefit is payable F81or any housing costs to the extent that they are met under regulation 83(f) or 84(1)(g) (housing costs)F82..., of a single claimant or, as the case may be, of F83any other member of his family F83his partner and any payments from access funds which are used for any council tax or water charges for which that claimant or F84member is liable F84partner is liable shall be disregarded as income to the extent of £20 per week.

F85(3A)

In paragraph (3) “ordinary clothing or footwear” means clothing or footwear for normal daily use, but it does not include—

(a)

school uniforms, or

(b)

clothing or footwear used solely for sporting activities.

(4)

Where a payment from access funds is made—

(a)

on or after 1st September or the first day of the course, whichever first occurs, but before receipt of any student loan in respect of that year and that payment is intended for the purpose of bridging the period until receipt of the student loan; or

(b)

before the first day of the course to a person in anticipation of that person becoming a student;

that payment shall be disregarded as income.

F86Treatment of fee loans136B.

A loan for fees, known as a fee loan or a fee contribution loan, made pursuant to regulations made under Article 3 of the Education (Student Support) (Northern Ireland) Order 1998, section 22 of the Teaching and Higher Education Act 1998 or section 73(f) of the Education (Scotland) Act 1980, shall be disregarded as income.

Disregard of contribution137.

Where the claimant or his partner is a student and, for the purposes of assessing a contribution to the student’s grant F87or student loan, the other partner’s income has been taken into account, an amount equal to that contribution shall be disregarded for the purposes of assessing that other partner’s income.

F88Further disregard of student’s income137A.

Where any part of a student’s income has already been taken into account for the purposes of assessing his entitlement to a grant F89or student loan, the amount taken into account shall be disregarded in assessing that student’s income.

Income treated as capital138.

F90(1)

Any amount by way of a refund of tax deducted from a student’s income shall be treated as capital.

F91(2)

An amount paid from access funds as a single lump sum shall be treated as capital.

(3)

An amount paid from access funds as a single lump sum which is intended and used for an item other than food, ordinary clothing or footwearF92..., household fuel, rent for which housing benefit is payable F93or any housing costs to the extent that they are met under regulation 83(f) or 84(1)(g) (housing costs)F94..., of a single claimant or, as the case may be, of F95any other member of his family F95his partner, or which is used for an item other than any council tax or water charges for which that claimant or F96member is liable F96partner is liable shall be disregarded as capital but only for a period of 52 weeks from the date of the payment.

F97(4)

In paragraph (3) “ordinary clothing or footwear” means clothing or footwear for normal daily use, but it does not include—

(a)

school uniforms, or

(b)

clothing or footwear used solely for sporting activities.

Disregard of changes occurring during summer vacation139.

In calculating a student’s income F98the Secretary of State shall disregard any change in the standard maintenance grant occurring in the recognised summer vacation appropriate to the student’s course, if that vacation does not form part of his period of study, from the date on which the change occurred up to the end of that vacation.