PART 5GRANTS FOR LIVING AND OTHER COSTS

CHAPTER 4GRANTS FOR DEPENDANTS

Interpretation of Chapter 442.

(1)

In regulations 44 to 47—

(a)

subject to sub-paragraph (n), “adult dependant” means, in relation to an eligible student, an adult person dependent on the student other than the student's child, the student's partner (including a spouse or civil partner from whom the Secretary of State considers the student is separated) or the student's former partner;

(b)

“child” in relation to an eligible student includes any child of the student's partner who is dependent on the student and any child for whom the student has parental responsibility who is dependent on the student;

(c)

“dependant” means, in relation to an eligible student, the student's partner, the student's dependent child or an adult dependant, who in each case is not an eligible student and does not hold a statutory award;

(d)

“dependent” means wholly or mainly financially dependent;

(e)

“dependent child” means, in relation to an eligible student, a child dependent on the student;

F1(f)

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(g)

“net income” has the meaning given in paragraph (2);

F2(ga)

“preceding financial year” means the financial year immediately preceding the relevant year;

(gb)

“prior financial year” means the financial year immediately preceding the preceding financial year;

(gc)

“relevant year” means the academic year of the course in respect of which the eligible student’s dependants’ income falls to be assessed;

(gd)

“residual income” means taxable income after the application of paragraph (5) (in the case of an eligible student’s partner) or paragraph (6) (in the case of an eligible student’s adult dependants);

F3(ge)

“taxable income” means, in respect of the prior financial year—

(i)

the total income on which a person (“A”) is charged to income tax as determined at Step 1 of the calculation in section 23 of the Income Tax Act 2007, together with any payments and other benefits mentioned in section 401(1) of the Income Tax (Earnings and Pensions) Act 2003 (ignoring section 401(2) of that Act), received or treated as received by A, to the extent that they are not a component of the total income on which A is charged to income tax;

(ii)

A’s total income from all sources as determined for the purposes of the income tax legislation of F4a Member State which applies to A’s income; or

F5(iii)

where the legislation of—

(aa)

the United Kingdom and one or more Member States; or

(bb)

more than one Member State

applies to the period, A’s total income from all sources as determined for the purposes of the income tax legislation under which the Secretary of State considers that A’s total income in that period is greatest,

F6except that no account is taken of income referred to in paragraph (1A) paid to another party;

(h)

subject to sub-paragraphs (i), (j), (k), (l) and (m), “partner” means any of the following—

(i)

the spouse of an eligible student;

(ii)

the civil partner of an eligible student;

(iii)

a person ordinarily living with an eligible student as if that person were the student's spouse where an eligible student falls within paragraph 2(1)(a) of Schedule 4 and began the specified designated course on or after 1st September 2000;

(iv)

a person ordinarily living with an eligible student as if that person were the student's civil partner where an eligible student falls within paragraph 2(1)(a) of Schedule 4 and began the specified designated course on or after 1st September 2005;

(i)

unless otherwise indicated, a person who would otherwise be a partner under sub-paragraph (h) is not to be treated as a partner if—

(i)

in the opinion of the Secretary of State, that person and the eligible student are separated; or

(ii)

the person is ordinarily living outside the United Kingdom and is not maintained by the eligible student;

(j)

for the purposes of the definition of “adult dependant”, a person is to be treated as a partner if that person would be a partner under sub-paragraph (h) but for the fact that the eligible student with whom that person is ordinarily living does not fall within paragraph 2(1)(a) of Schedule 4;

(k)

for the purposes of the F7definition of child, a person is to be treated as a partner if that person would be a partner under sub-paragraph (h) but for the date on which the eligible student began the specified designated course or the fact that the eligible student with whom that person is ordinarily living does not fall within paragraph 2(1)(a) of Schedule 4;

(l)

for the purposes of regulation 45—

(i)

sub-paragraph (i) does not apply; and

(ii)

a person is to be treated as a partner if that person would be a partner under sub-paragraph (h) but for the fact that the eligible student with whom that person is ordinarily living does not fall within paragraph (2)(1)(a) of Schedule 4;

(m)

for the purposes of determining whether a person is the former partner of an eligible student's partner, “partner” in relation to an eligible student's partner means—

(i)

the spouse of an eligible student's partner;

(ii)

the civil partner of an eligible student's partner;

(iii)

where the eligible student began the specified designated course on or after 1st September 2000, a person (“A”) ordinarily living with an eligible student's partner (“B”) as if A were B's spouse;

(iv)

where the eligible student began the specified designated course on or after 1st September 2005, a person “A” ordinarily living with an eligible student's partner “B” as if A were B's civil partner;

(n)

subject to sub-paragraph (o), for the purposes of the definitions of “adult dependant” and “dependent child”, the Secretary of State may treat an adult person or child as dependent on an eligible student if the Secretary of State is satisfied that the adult person or child—

(i)

is not dependent on—

(aa)

the eligible student; or

(bb)

the student's partner; but

(ii)

is dependent on the eligible student and the student's partner together;

(o)

the Secretary of State must not treat an adult person (“A”) as dependent on an eligible student in accordance with sub-paragraph (n), if A is—

(i)

the spouse or civil partner of the eligible student's partner (including a spouse or civil partner from whom the Secretary of State considers the eligible student's partner is separated); or

(ii)

the former partner of the eligible student's partner.

F8(1A)

The income referred to in this paragraph is any benefits under a pension arrangement pursuant to an order made under section 23 of the Matrimonial Causes Act 1973 which includes provision made by virtue of sections 25B(4) and 25E(3) of that Act or pension benefits under Part 1 of Schedule 5 to the Civil Partnership Act 2004 which includes provision made by virtue of Parts 6 and 7 of that Schedule.

(2)

F9...A dependant's net income is the dependant's income from all sources F10(for the relevant year for the purposes of regulation 44(2)(b) and for the prior financial year for the purposes of F11regulation 47) reduced by the amount of income tax and social security contributions payable in respect of it but disregarding—

(a)

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

(b)

child benefit payable under Part IX of the Social Security Contributions and Benefits Act 1992 M1;

(c)

any financial support payable to the dependant by a local authority in accordance with regulations made under sections 2, 3 and 4 of the Adoption and Children Act 2002 M2;

(d)

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

(e)

in the case of a dependant with whom a child being looked after by a local authority is boarded out, any payment made to that dependant in pursuance of section 22C of the Children Act 1989 M3 F12or, as the case may be, any payment made under section 81 of the Social Services and Well-being (Wales) Act 2014;

(f)

any payments made to the dependant under section 15 of and Schedule 1 to the Children Act 1989 in respect of a person who is not the dependant's child or any assistance given by a local authority pursuant to section 24 of that Act M4 F13or section 104 of the Social Services and Well-being (Wales) Act 2014 in so far as that section applies to category 5 and 6 young persons within the meaning of that Act;

(g)

any child tax credit to which the dependant is entitled under Part I of the Tax Credits Act 2002 M5; F14...

(h)

a higher education bursary paid to the dependent;

F15(i)

in the case of a dependant who is entitled to an award of universal credit—

(i)

any amount that is included in the calculation of the award, under regulation 27(1) of the Universal Credit Regulations 2013, in respect of the fact that the dependant has F16... or limited capability for work and work-related activity;

(ii)

any amount or additional amount that is included in the calculation of the award under regulation 24 of those Regulations (the child element).

F17(3)

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F18(3A)

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(4)

For the purposes of paragraph (2), where the dependant is a dependent child and payments are made to the eligible student towards the child's maintenance, those payments are to be treated as the child's income.

F19(5)

An eligible student’s partner’s residual income is determined in accordance with paragraph 6 of Schedule 4.

(6)

An eligible student’s adult dependants’ residual income is determined in accordance with paragraph 5 of Schedule 4 (other than sub-paragraphs F20(3)(b) and (c), (4)(b) and (c), (9), (10) and (11) of paragraph 5), references to the parent being construed as references to the eligible student’s adult dependants.