73.—(1) In this Part—
“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 is to be considered to begin in the autumn rather than the summer;
“access funds” means—
grants made under section 68 of the Further and Higher Education Act 1992(1) for the purpose of providing funds on a discretionary basis to be paid to students;
grants made under sections 73(a) and (c) and 74(1) of the Education (Scotland) Act 1980(2);
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, for the purpose of assisting students in financial difficulties;
discretionary payments, known as “learner support funds”, which are made available to students in further education by institutions out of funds provided by the Secretary of State under section 14 of the Education Act 2002 or the Chief Executive of Skills Funding under sections 100 and 101 of the Apprenticeships, Skills, Children and Learning Act 2009(3); or
Financial Contingency Funds made available by the Welsh Ministers;
“college of further education” means a college of further education within the meaning of Part 1 of the Further and Higher Education (Scotland) Act 1992;
“contribution” means—
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
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 considers that it is reasonable for the following persons to contribute towards the holder’s expenses—
the holder of the allowance or bursary;
the holder’s parents;
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
the holder’s spouse or civil partner;
“course of study” means any course of study, whether or not it is a sandwich course and whether or not a grant is made for attending or undertaking it;
“covenant income” means the gross income payable to a full-time student under a Deed of Covenant by his parent;
“education authority” means a government department, a local authority as defined in section 579 of the Education Act 1996 (interpretation), a local education authority as defined in section 123 of the Local Government (Scotland) Act 1973, an education and library board established under Article 3 of the Education and Libraries (Northern Ireland) Order 1986, any body which is a research council for the purposes of the Science and Technology Act 1965 or any analogous government department, authority, board or body, of the Channel Islands, Isle of Man or any other country outside Great Britain;
“full-time course of study” means a full-time course of study which—
is not funded in whole or in part by the Secretary of State under section 14 of the Education Act 2002, the Chief Executive of Skills Funding or by the Welsh Ministers or a full-time course of study which is not funded in whole or in part by the Scottish Ministers at a college of further education or a full-time course of study which is a course of higher education and is funded in whole or in part by the Scottish Ministers;
is funded in whole or in part by the Secretary of State under section 14 of the Education Act 2002, the Chief Executive of Skills Funding or by the Welsh Ministers if it involves more than 16 guided learning hours per week for the student in question, according to the number of guided learning hours per week for that student set out—
in the case of a course funded by the Secretary of State under section 14 of the Education Act 2002 or the Chief Executive of Skills Funding, in the student’s learning agreement signed on behalf of the establishment which is funded by either of those persons for the delivery of that course; or
in the case of a course funded by the Welsh Ministers, in a document signed on behalf of the establishment which is funded by that Council for the delivery of that course; or
is not higher education and is funded in whole or in part by the Scottish Ministers at a college of further education and involves—
more than 16 hours per week of classroom-based or workshop-based programmed learning under the direct guidance of teaching staff according to the number of hours set out in a document signed on behalf of the college; or
16 hours or less per week of classroom-based or workshop-based programmed learning under the direct guidance of teaching staff and additional hours using structured learning packages supported by the teaching staff where the combined total of hours exceeds 21 hours per week, according to the number of hours set out in a document signed on behalf of the college;
“full-time student” means a person attending or undertaking a full-time course of study and includes a student on a sandwich course;
“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 or any payment to which paragraph 16 of Schedule 8 or paragraph 55 of Schedule 10 (allowances and payments for courses of study) applies;
“grant income” means—
any income by way of a grant;
any contribution whether or not it is paid;
“higher education” means higher education within the meaning of Part 2 of the Further and Higher Education (Scotland) Act 1992;
“last day of the course” means—
in the case of a qualifying course, the date on which the last day of that course falls or the date on which the final examination relating to that course is completed, whichever is the later;
in any other case, the date on which the last day of the final academic term falls in respect of the course in which the student is enrolled;
“period of study” means—
in the case of a course of study for one year or less, the period beginning with the start of the course and ending with the last day of the course;
in the case of a course of study for more than one year, in the first or, as the case may be, any subsequent year of the course, other than the final year of the course, the period beginning with the start of the course or, as the case may be, that year’s start and ending with either—
the day before the start of the next year of the course in a case where the student’s grant or loan is assessed at a rate appropriate to his studying throughout the year or, if he does not have a grant or loan, where a loan would have been assessed at such a rate had he had one; or
in any other case, the day before the start of the normal summer vacation appropriate to his course;
in the final year of a course of study of more than one year, the period beginning with that year’s start and ending with the last day of the course;
“periods of experience” means periods of work experience which form part of a sandwich course;
“qualifying course” means a qualifying course as defined for the purposes of Parts 2 and 4 of the Jobseeker’s Allowance Regulations 1996;
“sandwich course” has the meaning prescribed in regulation 2(9) of the Education (Student Support) Regulations 2008, regulation 4(2) of the Education (Student Loans) (Scotland) Regulations 2007 or regulation 2(8) of the Education (Student Support) Regulations (Northern Ireland) 2007, as the case may be;
“standard maintenance grant” means—
except where paragraph (b) or (c) applies, in the case of a student attending or 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 2003(4) (“the 2003 Regulations”) for such a student;
except where paragraph (c) applies, in the case of a student residing at his parent’s home, the amount specified in paragraph 3 thereof;
in the case of a student receiving an allowance or bursary under the Education (Scotland) Act 1980, the amount of money specified as “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 authority;
in any other case, the amount specified in paragraph 2(2) of Schedule 2 to the 2003 Regulations other than in sub-paragraph (a) or (b) thereof;
“student” means a person, other than a person in receipt of a training allowance, who is attending or undertaking—
a course of study at an educational establishment; or
a qualifying course;
“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(5), section 73 of the Education (Scotland) Act 1980 or Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 and includes, in Scotland, a young student’s bursary paid under regulation 4(1)(c) of the Students’ Allowances (Scotland) Regulations 2007.
(2) For the purposes of the definition of “full-time student” in sub-paragraph (1), a person must be regarded as attending or, as the case may be, undertaking a full-time course of study or as being on a sandwich course—
(a)subject to sub-paragraph (3), in the case of a person attending or undertaking a part of a modular course which would be a full-time course of study for the purposes of this Part, for the period beginning on the day on which that part of the course starts and ending—
(i)on the last day on which he is registered with the educational establishment as attending or undertaking that part as a full-time course of study; or
(ii)on such earlier date (if any) as he finally abandons the course or is dismissed from it;
(b)in any other case, throughout the period beginning on the date on which he starts attending or undertaking the course and ending on the last day of the course or on such earlier date (if any) as he finally abandons it or is dismissed from it.
(3) For the purposes of paragraph (a) of sub-paragraph (2), the period referred to in that paragraph includes—
(a)where a person has failed examinations or has failed successfully to complete a module relating to a period when he was attending or undertaking a part of the course as a full-time course of study, any period in respect of which he attends or undertakes the course for the purpose of retaking those examinations or that module;
(b)any period of vacation within the period specified in that paragraph or immediately following that period except where the person has registered with the educational establishment to attend or undertake the final module in the course and the vacation immediately follows the last day on which he is required to attend or undertake the course.
(4) In sub-paragraph (2), “modular course” means a course of study which consists of two or more modules, the successful completion of a specified number of which is required before a person is considered by the educational establishment to have completed the course.
74. This scheme has effect in relation to students who are not pensioners subject to the following provisions of this Part.
75.—(1) The students who are excluded from entitlement to a reduction under this scheme are, subject to sub-paragraphs (2) and (7)—
(a)full-time students, and
(b)students who are persons treated as not being in Great Britain(6).
(2) Sub-paragraph (1)(b) does not apply to a student—
(a)who is a person on income support, an income-based jobseeker’s allowance or an income-related employment and support allowance;
(b)who is a lone parent;
(c)whose applicable amount would, but for this paragraph, include the disability premium or severe disability premium;
(d)whose applicable amount would include the disability premium but for his being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the SSCBA;
(e)who is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part 12A of the SSCBA (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days must be treated as one continuous period;
(f)who has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations 2008 for a continuous period of not less than 196 days, and for this purpose any two or more separate periods separated by a break of not more than 84 days must be treated as one continuous period;
(g)who has a partner who is also a full-time student, if he or that partner is treated as responsible for a child or young person;
(h)who is a single applicant with whom a child is placed by a local authority or voluntary organisation within the meaning of the Children Act 1989 or, in Scotland, boarded out within the meaning of the Social Work (Scotland) Act 1968;
(i)who is—
(i)aged under 21 and whose course of study is not a course of higher education,
(ii)aged 21 and attained that age during a course of study which is not a course of higher education, or
(iii)a qualifying young person or child within the meaning of section 142 of the SSCBA (child and qualifying young person);
(j)in respect of whom—
(i)a supplementary requirement has been determined under paragraph 9 of Part 2 of Schedule 2 to the Education (Mandatory Awards) Regulations 2003;
(ii)an allowance, or as the case may be, bursary has been granted which includes a sum under paragraph (1)(d) of regulation 4 of the Students’ Allowances (Scotland) Regulations 1999 or, as the case may be, under paragraph (1)(d) of regulation 4 of the Education Authority (Bursaries) (Scotland) Regulations 1995, in respect of expenses incurred;
(iii)a payment has been made under or by virtue of regulations made under the Teaching and Higher Education Act 1998;
(iv)a grant has been made under regulation 13 of the Education (Student Support) Regulations 2005 or under regulation 13 of the Education (Student Support) Regulations (Northern Ireland) 2000; or
(v)a supplementary requirement has been determined under paragraph 9 of Schedule 6 to the Students Awards Regulations (Northern Ireland) 1999 or a payment has been made under Article 50(3) of the Education and Libraries (Northern Ireland) Order 1986,
on account of his disability by reason of deafness.
(3) Sub-paragraph (2)(i)(ii) only applies to an applicant until the end of the course during which the applicant attained the age of 21.
(4) For the purposes of sub-paragraph (2), once sub-paragraph (2)(e) applies to a full-time student, if he then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that sub-paragraph must, on his again becoming so incapable, or so treated as incapable, of work at the end of that period, immediately thereafter apply to him for so long as he remains incapable or is treated as remaining incapable, of work.
(5) In sub-paragraph (2)(i) the reference to a course of higher education is a reference to a course of any description mentioned in Schedule 6 to the Education Reform Act 1988(7).
(6) A full-time student to whom sub-paragraph (2)(i) applies must be treated as satisfying that sub-paragraph from the date on which he made a request for the supplementary requirement, allowance, bursary or payment as the case may be.
(7) Sub-paragraph (1)(b) does not apply to a full-time student for the period specified in sub-paragraph (8) if—
(a)at any time during an academic year, with the consent of the relevant educational establishment, he ceases to attend or undertake a course because he is—
(i)engaged in caring for another person; or
(ii)ill;
(b)he has subsequently ceased to be engaged in caring for that person or, as the case may be, he has subsequently recovered from that illness; and
(c)he is not eligible for a grant or a student loan in respect of the period specified in sub-paragraph (8).
(8) The period specified for the purposes of sub-paragraph (7) is the period, not exceeding one year, beginning on the day on which he ceased to be engaged in caring for that person or, as the case may be, the day on which he recovered from that illness and ending on the day before—
(a)the day on which he resumes attending or undertaking the course; or
(b)the day from which the relevant educational establishment has agreed that he may resume attending or undertaking the course,
whichever first occurs.
76.—(1) The amount of a student’s grant income to be taken into account in assessing his income must, subject to sub-paragraphs (2) and (3), be the whole of his grant income.
(2) There must be excluded from a student’s grant income any payment—
(a)intended to meet tuition fees or examination fees;
(b)in respect of the student’s disability;
(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 during his course;
(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;
(g)intended to meet travel expenses incurred as a result of his attendance on the course;
(h)intended for the child care costs of a child dependant;
(i)of higher education bursary for care leavers made under Part 3 of the Children Act 1989.
(3) Where a student does not have a student loan and is not treated as possessing such a loan, there must be excluded from the student’s grant income—
(a)the sum of £303 per academic year in respect of travel costs; and
(b)the sum of £390 per academic year towards the costs of books and equipment,
whether or not any such costs are incurred.
(4) There must also be excluded from a student’s grant income the grant for dependants known as the parents’ learning allowance paid pursuant to regulations made under Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 or section 22 of the Teaching and Higher Education Act 1998(8).
(5) Subject to sub-paragraphs (6) and (7), a student’s grant income must be apportioned—
(a)subject to sub-paragraph (8), in a case where it is attributable to the period of study, equally between the weeks in that period beginning with the reduction week, the first day of which coincides with, or immediately follows, the first day of the period of study and ending with the reduction 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 beginning with the reduction 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 reduction week, the last day of which coincides with, or immediately precedes, the last day of the period for which it is payable.
(6) Any grant in respect of dependants 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 dependants under Part 3 of Schedule 2 to the Education (Mandatory Awards) Regulations 2003 must be apportioned equally over the period of 52 weeks or, if there are 53 reduction weeks (including part-weeks) in the year, 53.
(7) In 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 dependants to which neither sub-paragraph (6) nor paragraph 80(2) (other amounts to be disregarded) applies, must be apportioned over the same period as the student’s loan is apportioned or, as the case may be, would have been apportioned.
(8) In the case of a student on a sandwich course, any periods of experience within the period of study must be excluded and the student’s grant income must be apportioned equally between the weeks in the period beginning with the reduction week, the first day of which immediately follows the last day of the period of experience and ending with the reduction week, the last day of which coincides with, or immediately precedes, the last day of the period of study.
77.—(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 must be the whole amount of the covenant income less, subject to sub-paragraph (3), the amount of the contribution.
(2) The weekly amount of the student’s covenant must be determined—
(a)by dividing the amount of income which falls to be taken into account under sub-paragraph (1) by 52 or 53, whichever is reasonable in the circumstances; and
(b)by disregarding £5 from the resulting amount.
(3) For the purposes of sub-paragraph (1), the contribution must be treated as increased by the amount (if any) by which the amount excluded under paragraph 76(2)(g) falls short of the amount specified in paragraph 7(2) of Schedule 2 to the Education (Mandatory Awards) Regulations 2003 (travel expenditure).
78.—(1) Where a student is not in receipt of income by way of a grant the amount of his covenant income must be calculated as follows—
(a)any sums intended for any expenditure specified in paragraph 76(2)(a) to (e) necessary as a result of his attendance on the course must be disregarded;
(b)any covenant income, up to the amount of the standard maintenance grant, which is not so disregarded, must be apportioned equally between the weeks of the period of study;
(c)there must be disregarded from the amount so apportioned the amount which would have been disregarded under paragraph 76(2)(f) and (3) had the student been in receipt of the standard maintenance grant; and
(d)the balance, if any, must be divided by 52 or 53 whichever is reasonable in the circumstances and treated as weekly income of which £5 must 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 covenanted income must be calculated in accordance with paragraphs (a) to (d) of sub-paragraph (1), except that—
(a)the value of the standard maintenance grant must be abated by the amount of such grant income less an amount equal to the amount of any sums disregarded under paragraph 76(2)(a) to (e); and
(b)the amount to be disregarded under sub-paragraph (1)(c) must be abated by an amount equal to the amount of any sums disregarded under paragraph 76(2)(f) and (g) and (3).
79. No part of a student’s covenant income or grant income is to be disregarded under paragraph 19 of Schedule 8 (disregard of certain charitable and voluntary, etc., payments).
80.—(1) For the purposes of ascertaining income other than grant income, covenant income and loans treated as income in accordance with paragraph 81 (treatment of student loans), any amounts intended for any expenditure specified in paragraph 76(2) (calculation of grant income), necessary as a result of his attendance on the course must be disregarded.
(2) But sub-paragraph (1) applies only if, and to the extent that, the necessary expenditure exceeds or is likely to exceed the amount of the sums disregarded under paragraph 76(2) or (3), 77(3), 78(1)(a) or (c) or 81(5) (calculation of grant income, covenant income and treatment of student loans) on like expenditure.
81.—(1) A student loan is to be treated as income.
(2) In calculating the weekly amount of the loan to be taken into account as income—
(a)in 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 is to be apportioned equally between the weeks in the period beginning with—
(i)except in a case where sub-paragraph (ii) applies, the reduction 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 less than an academic year’s duration, the reduction week, the first day of which coincides with, or immediately follows, the first day of the course,
and ending with the reduction week, the last day of which coincides with, or immediately precedes, the last day of the course;
(b)in 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 is to be apportioned equally between the weeks in the period—
(i)beginning with the reduction week, the first day of which coincides with or immediately follows, the first day of that academic year, and
(ii)ending with the reduction week, the last day of which coincides with or immediately precedes, the last day of that academic year,
but excluding any reduction weeks falling entirely within the quarter during which, in the opinion of the authority, the longest of any vacation is taken and for the purposes of this paragraph, “quarter” has the same meaning as for the purposes of the Education (Student Support) Regulations 2005;
(c)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 is to be apportioned equally between the weeks in the period beginning with—
(i)except in a case where sub-paragraph (ii) applies, the reduction week, the first day of which coincides with, or immediately follows, the first day of that academic year;
(ii)where the final academic year starts on 1st September, the reduction 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 the reduction week, the last day of which coincides with, or immediately precedes, the last day of the course;
(d)in any other case, the loan is to be apportioned equally between the weeks in the period beginning with the earlier of—
(i)the first day of the first reduction week in September; or
(ii)the reduction week, the first day of which coincides with, or immediately follows the first day of the autumn term,
and ending with the reduction 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 £10 is to be disregarded.
(3) A student is to 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 sub-paragraph (3), the amount of the student loan to be taken into account as income must be, subject to sub-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—
(i)the maximum student loan he is able to acquire in respect of that year by taking reasonable steps to do so; and
(ii)any contribution whether or not it has been paid to him;
(b)in 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 must be deducted from the amount of income taken into account under sub-paragraph (4)—
(a)the sum of £303 per academic year in respect of travel costs; and
(b)the sum of £390 per academic year towards the cost of books and equipment,
whether or not any such costs are incurred.
(6) 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.
82.—(1) This paragraph applies to payments from access funds that are not payments to which paragraph 85(2) or (3) (income treated as capital) applies.
(2) A payment from access funds, other than a payment to which sub-paragraph (3) applies, must be disregarded as income.
(3) Subject to sub-paragraph (4) of this paragraph and paragraph 40 of Schedule 8 (disregards in the calculation of income other than earnings: persons who are not pensioners)—
(a)any payments from access funds which are intended and used for an item of food, ordinary clothing or footwear, household fuel, or rent of a single applicant or, as the case may be, of the applicant or any other member of his family, and
(b)any payments from access funds which are used for any council tax or water charges for which that applicant or member is liable,
must be disregarded as income to the extent of £20 per week.
(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 must be disregarded as income.
83. Where the applicant or his partner is a student and, for the purposes of assessing a contribution to the student’s grant or student loan, the other partner’s income has been taken into account, an amount equal to that contribution must be disregarded for the purposes of assessing that other partner’s income.
84. Where any part of a student’s income has already been taken into account for the purposes of assessing his entitlement to a grant or student loan, the amount taken into account must be disregarded in assessing that student’s income.
85.—(1) Any amount by way of a refund of tax deducted from a student’s covenant income must be treated as capital.
(2) An amount paid from access funds as a single lump sum must 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 footwear, household fuel or rent, or which is used for an item other than any council tax or water charges for which that applicant or member is liable, must be disregarded as capital but only for a period of 52 weeks from the date of the payment.
86. In calculating a student’s income the authority must 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 to the end of that vacation.
S.I. 2003/1994; relevant amending instrument is S.I. 2008/1477.
See paragraph 21 as to persons treated as not being in Great Britain.