SCHEDULE 3RESOURCES

PART ISTUDENT'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 £880 of income of any description;

(b)

the first £4,150 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 198639 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 199440 or under section 65(3) of the Further and Higher Education Act 199241;

(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 199242;

(k)

any allowance payable to the student by an adoption agency in accordance with regulations made under section 57A of the Adoption Act 197643;

(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 198944;

(n)

any payments made to the student in pursuance of an order made under section 34 of the Children Act 197545 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 or working families' tax credit under Part VII of the Social Security Contributions and Benefits Act 1992;

(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 £3,340 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 ERASMUS46, the European Community programme for foreign language competence known as LINGUA47 or the European Community programme known as LEONARDO DA VINCI48;

(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 199249, or sections 73 and 74 of the Education (Scotland) Act 198050 or out of access funds under article 30 of the Education and Libraries (Northern Ireland) Order 199351 or article 5 of the Further Education (Northern Ireland) Order 199752;

(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 197153 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 therefrom—

(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 and, in pursuance of paragraph 16(1) thereof, the payment is taken into account in determining the spouse’s income.

(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) 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 value 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”.