The Education (Mandatory Awards) Regulations 1989

• (a) where the contributions are either all ascertained under sub-paragraph (1) or all ascertained under sub-paragraph (2), the aggregate amount of the contributions in respect of each shall not exceed the amount of the contribution that would be ascertained if only one child held an award; or

• (b) where the contributions are ascertained under both sub-paragraph (1) and sub-paragraph (2), the aggregate amount of the contributions shall not exceed the average of both or all (as the case may be) the contributions thus ascertained.

• (5) Where in any year a student attends only part of his course the parental contribution for that year shall be reduced pro rata.

Gross income

5

• (1) For the purposes of this paragraph “preceding financial year” means the financial year preceding the year in respect of which the resources of the student fall to be assessed and “current financial year” means the financial year which includes the first day of the year:

Provided that where references to a financial year fall to be construed in accordance with paragraph 2(3) as references to a year ending less than five months before the beginning of a year of the student’s course, “preceding financial year” shall mean the year last ending five or more months before the year in respect of which the resources of the student fall to be assessed and “current financial year” shall mean the year ending within those five months.

• (2) Subject to the provisions of this paragraph, “gross income” means the income of the student’s parent in the preceding financial year or, for the purpose of calculating residual income under paragraph 2(2), in the financial year there mentioned.

• (3) Where the authority are satisfied that the income of the parent in the current financial year is likely to be not more than 85 per cent of his income for the preceding financial year, they may for the purpose of calculating the parental contribution ascertain the gross income by reference to the current financial year; and in such case sub-paragraph (2) shall have effect, in relation to the year in respect of which the student’s resources fall to be assessed and, if the authority so determine, any subsequent year, as if the reference therein to the preceding financial year were a reference to the current financial year.

• (4) Where–

• (a) one of the student’s parents dies either before or during the year in respect of which the resources of the student fall to be ascertained (“the relevant year”); and

• (b) that parent’s income has been or would be taken into account for the purpose of determining the parental contribution,

the parental contribution shall–

• (a) where the parent dies before the relevant year, be determined by reference to the income of the surviving parent; or

• (b) where the parent dies during the relevant year, be the aggregate of–

• (i) the appropriate proportion of the contribution determined by reference to the income of both parents that is to say such proportion thereof as the part of the relevant year during which both parents were alive bears to the full yearsubject to a maximum of the appropriate proportion of the student’s maintenance requirements as determined in accordance with Schedule 2; and

• (ii) the appropriate proportion of the contribution determined by reference to the income of the surviving parent, that is to say such proportion thereof as the part of the relevant year remaining after the parent dies bears to the full yearsubject to a maximum of the appropriate proportion of the student’s maintenance requirements as determined in accordance with Schedule 2.

• (5) Without prejudice to sub-paragraph (6), where, in pursuance of any trust deed or other instrument or by virtue of section 31(1) of the Trustee Act 1925[^f00057] or any other enactment, any income is applied by any person for or towards the maintenance, education or other benefit of the student or of any person dependent on the student’s parent, or payments made to his parent are required to be so applied, that income, or those payments, shall be treated as part of the gross income of the parent.

• (6) Where any such benefit as is mentioned in paragraph 1(1)(b)(i) of Part 1 of this Schedule is provided, by reason of the parent’s employment, for any member of his family or household who holds a statutory award (whether the student or some other such member) then, notwithstanding the provisions of section 61 of the Finance Act 1976[^f00058], that benefit shall not be treated as part of the gross income of the parent.

• (7) Where the parents do not ordinarily live together throughout the year in respect of which the resources of the student fall to be ascertained (“the relevant year”), the parental contribution shall be determined by reference to the income of whichever parent the authority consider the more appropriate in the circumstances.

• (8) Where the parents do not ordinarily live together for part only of the relevant year, the parental contribution shall be the aggregate of–

• (a) the appropriate proportion of the contribution determined as provided in sub-paragraph (7), that is to say such proportion thereof as the part of the relevant year for which the parents do not so live together bears to the full year; and

• (b) the appropriate proportion of the contribution determined without regard to this sub-paragraph, that is to say, such proportion thereof as the part of the relevant year for which the parents so live together bears to the full year.

• (9) Where one of the student’s parents is his step-parent the parental contribution shall be ascertained by reference only to the income of the other parent.

Deductions

6

• (1) For the purposes of determining the income of a student’s parent (and, accordingly, the parent’s gross income), in so far as in computing his total income for income tax purposes any deductions fall to be made–

• (a) by way of personal reliefs provided for in Chapter II of Part I of the Income and Corporation Taxes Act 1970[^f00059] or section 26 of the Finance Act 1987[^f00060];

• (b) in respect of any payment made by the parent under covenant;

• (c) in pursuance of any Act passed after the passing of the Finance Act 1987 on 15 May 1987; or

• (d) without prejudice as aforesaid, of a kind mentioned in sub-paragraph (2),

the parent’s income shall be determined as though those deductions did not fall to be made.

• (2) For the purpose of determining a parent’s residual income there shall be deducted from his gross income–

• (a) in respect of any person, other than a spouse, child or holder of a statutory award, dependent on the parent during the year for which the contribution falls to be ascertained, the amount by which£1,380 exceeds the income of that person in that year;

• (b) the gross amount of any sums paid as interest (including interest on a mortgage) in respect of which relief is given under the Income Tax Acts in respect of a loan to the parent;

• (c) half of the gross amount of any premium payable under a policy of life insurance in respect of which relief is given under section 19 or 227 of the Income and Corporation Taxes Act 1970 (life policy and certain other premiums) in the relevant year;

• (d) the gross amount of any other premium or sum in respect of which relief is given under section 19, 20 (dependants pension schemes) or 227 of that Act or section 31 of the Finance (No. 2) Act 1987[^f00061] in the relevant year;

• (e) where the parents ordinarily live together and one of them is incapacitated, so much of the cost in wages of domestic assistance as does not exceed£1,090;

• (f) where a parent whose marriage has terminated either is gainfully employed or is incapacitated, so much of the cost in wages of domestic assistance as does not exceed£1,090;

• (g) in respect of additional expenditure incurred by reason of the fact that parent lives in a place where the cost of living is higher than that cost in the United Kingdom, such sum (if any) as the authority consider reasonable in all the circumstances;

• (h) in the case of a parent who holds a statutory award, the amount by which the aggregate of his requirements for his ordinary maintenance (ascertained in accordance with Part 1 of Schedule 2) and£565 exceeds the sum payable in respect of maintenance in pursuance of that award;

• (i) any payments made pursuant to an order made under section 34 of the Children Act 1975[^f00062].

• (3) In any case where income is computed as though it were total income by virtue of paragraph 2(4), there shall be deducted from the parent’s gross income sums equivalent to the deductions mentioned in (b), (c), (d) or (i) of sub-paragraph (2), provided that any sums so deducted shall not exceed the deductions that would be made if the whole of the parent’s income were in fact total income.

PART 3 — spouse’s contribution

Application of Part 3

7

A spouse’s contribution ascertained in accordance with this Part shall be applicable in the case of every man student ordinarily living with his wife and every woman student so living with her husband except–

• (a) a student in whose case a parental contribution is applicable in accordance with Part 2; and

• (b) a student whose child holds an award in respect of which a parental contribution is applicable.

Spouse’s contribution

8

• (1) Subject to sub-paragraphs (3) and (4), Part 2 above, except paragraphs 3, 4(1), (2), (3) and (4)(a) and (c), 5(4), (7), (8) and (9), and 6(2)(f ), shall apply with the necessary modifications for the ascertainment of the spouse’s contribution as it applies for the ascertainment of the parental contribution, references to the parent being construed, except where the context otherwise requires, as references to the student’s spouse and, unless the context otherwise requires, this Part shall be construed as one with the said Part 2.

• (2) The spouse’s contribution shall be–

• (a) in any case in which the residual income is£8,400 or more but less than£13,500, £10 with the addition of £1 for every complete £7 by which it exceeds£8,400;

• (b) in any case in which the residual income is£13,500 or more but less than£19,800, £738 with the addition of £1 for every complete £5 by which it exceeds£13,500; and

• (c) in any case in which the residual income is£19,800 or more,£1,998 with the addition of £1 for every complete £4 by which it exceeds£19,800;

reduced in any such case by £100 in respect of each child of the student who is dependent on him or his spouse on the first day of the year for which the contribution falls to be ascertained; and in any case in which the residual income is less than£8,400 the spouse’s contribution shall be nil:

Provided that the amount of the spouse’s contribution shall in no case exceed£5,300.

• (3) If the student marries during any year for which the contribution falls to be ascertained the contribution for that year shall be the fraction of the sum ascertained in accordance with the provisions of sub-paragraphs (1) and (2) of which the denominator is 52 and the numerator is the number of complete weeks between the date of the marriage and whichever is the earlier of the end of that year and the end of the course.

• (4) If the student’s marriage terminates during any year for which the contribution falls to be ascertained the contribution for that year shall be the fraction of the sum ascertained in accordance with the provisions of sub-paragaphs (1) and (2) of which the denominator is 52 and the numerator is the number of complete weeks between the beginning of that year and the termination of the marriage.

SCHEDULE 4 — SINGLE STUDENTS WITH DEPENDANTS

1

This Schedule shall apply in the case of a student who does not ordinarily live with a spouse or with another person as a spouse.

2

• (1) This paragraph shall apply where the student has dependants within the meaning of Part 3 of Schedule 2.

• (2) In the case of such a student–

• (a) the sum to be disregarded under paragraph 1(1)(a) of Schedule 3 shall be£1,285 instead of£565; or

• (b) his requirements under paragraph 15 of Part 3 of Schedule 2 shall be treated as increased by the sum of£720; or

• (c) in the case of a student to whom Part 4 of Schedule 2 applies, his requirements shall be treated as including the sum specified in paragraph 19 thereof,

whichever is the most favourable to him (disregarding sub-paragraph (b) where, in pursuance of the following paragraph, he elects as there mentioned).

3

• (1) This paragraph shall apply in the case of a student with one or more child dependants under the age of 19 years and for the purpose of this paragraph “child” shall have the same meaning as in Part 3 of Schedule 2.

• (2) Such a student may elect that the sum specified as his requirements in Part 3 of Schedule 2 shall be disregarded and that instead there shall in calculating his income be disregarded£1,505 in respect of his only or eldest such child and£475 in respect of every other such child.

SCHEDULE 5 — SANDWICH COURSES

1

• (1) In this Schedule–

• “sandwich course” means a course consisting of alternate periods of full-time study in an establishment and periods of experience so organised that, taking the course as a whole, the student attends the periods of full-time study for an average of not less than 19 weeks in each year; and for the purpose of calculating his attendance the course shall be treated as beginning with the first period of full-time study and ending with the last such period;

• “periods of experience” means, subject to sub-paragraph (2), periods of industrial, professional or commercial experience associated with full-time study at the establishment but at a place outside the establishment, other than periods of– unpaid service in a hospital or in a public health service laboratory; unpaid service with a local authority acting in the exercise of their functions relating to health, welfare or the care of children and young persons or with a voluntary organisation providing facilities or carrying out activities of a like nature; unpaid service in the probation and aftercare service; teaching practice; unpaid research in an establishment; such experience as aforesaid falling wholly within the terms at the establishment in any year which do not comprise paid service or employment and either– do not aggregate more than 6 weeks during that year; or do not aggregate more than 12 weeks during that and some other year taken together, where that other year has not already been taken into account for the purposes hereof; or unpaid service with– a health authority (within the meaning of section 128(1) of the National Health Service Act 1977[^f00063]; a health board constituted under section 2 of the National Health Service (Scotland) Act 1978[^f00064]; or a health and social services board established under Article 16 of the Health and Personal Social Services Order (Northern Ireland) 1972[^f00065];

• “sandwich year” means, as respects any student, any year of a sandwich course which includes both periods of full-time study in the establishment and periods of experience;

• “prescribed proportion” means the proportion which the number of weeks in the year for which the student in question attends the establishment bears to 30, except where that proportion is greater than the whole it means the whole;

• “modified proportion” means the proportion which the number of weeks in the year in which there are no periods of experience for the student in question bears to 52.

• (2) In the case of a student studying modern languages whose course includes periods of residence in a country whose language is a main language of the course, “periods of experience” means such periods of residence for which he is in gainful employment.

• (3) For the purposes of determining the prescribed proportion or the modified proportion where the number of weeks in question is not a whole number, a day shall be reckoned as a seventh of a week.

• (4) In the application of this Schedule to a student to whom Schedule 4 applies, references to Schedules 2 and 3 are to be construed as references to those Schedules as modified in accordance with Schedule 4.

• (5) In the application of this Schedule to a student attending a course provided at the University of Oxford or of Cambridge the provisions thereof shall have effect as if–

• (a) in the definitions of “prescribed proportion” in sub-paragraph (1) for the number “30” there were substituted the number “25”; and

• (b) in paragraph 2 for the words “30 weeks 3 days”, in both places where they occur, there were substituted the words “25 weeks 3 days”.

2

The provisions of Schedule 2 shall, as respects any sandwich year, have effect subject to the following modifications–

• (a) where the period of full-time study does not exceed 30 weeks 3 days, the student’s requirements for his ordinary maintenance shall be the prescribed proportion of the appropriate amount specified in Part 1;

• (b) where the period of full-time study exceeds 30 weeks 3 days, the student’s requirements for his ordinary and supplementary maintenance shall be the aggregate of the appropriate amount specified in Part 1 and the appropriate amount specified in paragraph 5 of Part 2;

• (c) the student’s requirement for the maintenance of a dependant shall be the modified proportion of the sum specified in Part 3 except that where such a requirement falls to be increased under paragraph 16 it shall be increased by the prescribed proportion of the sum there specified; and

• (d) if the student is a person to whom Part 4 applies, his requirements under that Part shall be the modified proportion of the amount there specified.

3

The provisions of Schedule 3 shall, as respects any sandwich year, have effect subject to the following modifications–

• (a) the sum to be disregarded under paragraph 1(1)(a) of Part 1 shall be the prescribed proportion of£565 and the reference in paragraph 1(1)(c) to£1,290 shall be construed as a reference to the aggregate of£725 and the prescribed proportion of£565;

• (b) in calculating the student’s income,

• (i) there shall be disregarded any payment made to him by his employer in respect of any period of experience;

• (ii) the prescribed proportion of his income shall be treated as if it were the whole of his income;

• (c) the amount of the parental contribution applicable to his case shall be the prescribed proportion of the contribution ascertained in accordance with Part 2; and

• (d) the amount of the spouse’s contribution applicable to his case shall be the prescribed proportion of the contribution ascertained in accordance with Part 3.

Signed

John MacGregor — Secretary of State for Education and Science — 8th August 1989

Explanatory note

(This note is not part of the Regulations)

These Regulations, which come into force on the 1st September 1989, supersede the Education (Mandatory Awards) Regulations 1988 which are revoked (Regulation 6(1).)

Provisions in these regulations which differ from the corresponding provisions of the 1988 Regulations (except as a result of minor drafting or consequential changes) are indicated by the use of heavy type. Omissions are indicated by the use of dots. The changes of substance other than the changes in rates of grant are described below.

Previous study will no longer affect a student’s entitlement to an award unless the student received a UK statutory award in respect of that study. Provisions relating to the eligibility for awards of students having attended a two-year course comparable to a first degree, and wishing to attend another designated course of two years' duration, had become redundant and have been removed. (Regulation 12.)

Awards will no longer be transferred at the request of the student where on completion of a course for the degree of Bachelor of Education, the student is admitted to a course of initial training for teachers of the deaf. Awards may now be transferred after the expiry of four months after the end of the first year of the original course but only where the expiry of that time limit is due solely to the need to apply through a clearing admissions system. (Regulation 14.)

New provisions have been inserted to deal with the position of British workers and their children returning to the United Kingdom from other European Community countries. (Regulation 13(3) and (4).)

Some courses in respect of which Department of Health bursaries are payable are designated courses with effect from 1st September 1989; recipients of such bursaries will not also be entitled to a mandatory award. (Regulation 23.)

The provisions relating to students provided with free board and lodging or who are only charged if their resources exceed their requirements have been removed. (Schedule 2 and the previous Regulation 24.) Provisions relating to students at establishments of further education which are not wholly maintained out of public funds or at the Royal Naval Engineering College, Manadon have also been removed. (Schedule 2.)

In paragraph 3 of Part 2 of Schedule 3 the period of three years has been reduced to two.

In calculating the amount of an award account will now be taken of any younger brother or sister for whom the student is legally and financially responsible. (Schedule 2 Part 3 paragraph 14.)

Trust income is to be disregarded where a parental contribution is applicable and disregarded up to £1,290 in certain other cases. (Schedule 3 Part 1 paragraph 1(1)(c).)

Only a proportionate part of the income of a student on a sandwich course (apart from income which is disregarded altogether) is to be taken into account in calculating his award. (Schedule 5 paragraph 3(b).)

Footnotes

[^f00001]: 1962 c. 12: the relevant provisions, as amended, are set out in Schedule 5 to the Education Act 1980 (c. 20); section 1(3)(d) was amended by the Education (Grants and Awards) Act 1984 (c. 11), section 4.

[^f00002]: 1973 c. 16.

[^f00003]: Cmnd. 9171.

[^f00004]: Cmnd. 3906 (Out of print: photocopies are available, free of charge, from Further and Higher Education Branch 3, Room 9/1, the Department of Education and Science, Elizabeth House, York Road, London SE1 7PH).

[^f00005]: 1975 c. 14.

[^f00006]: 1980 c. 30.

[^f00007]: Section 36 was substituted by section 11 of the Health and Social Security Act 1984 (c. 48) and a new section 22 was substituted by paragraph 13 of Part II of Schedule 4 to the Social Security Act 1986 (c. 50).

[^f00008]: 1982 c. 24.

[^f00009]: 1986 c. 50.

[^f00010]: 1976 c. 71; a new section 5 was substituted by section 38(1) of the Social Security and Housing Benefits Act 1982 (c. 24); section 5 was repealed with effect from 11th April 1988 by Schedule 11 to the Social Security Act 1986 (c. 50).

[^f00011]: S.I. 1981/1086, to which there were amendments not relevant to these Regulations. Schedule 2 to the Regulations is revoked by the Education (Schools and Further and Higher Education) Regulations 1989 (S.I. 1989/351).

[^f00012]: 1988 c. 40.

[^f00013]: S.I. 1988/1360.

[^f00014]: S.I. 1989/352.

[^f00015]: 1978 c. 30.

[^f00016]: S.I. 1983/1185, as amended by S.I. 1984/1179, 1985/1160 and 1986/1325.

[^f00017]: S.I. 1987/1261.

[^f00018]: OJ No L257, 19.10.68, p.2 (OJ/SE 1968 (II) p.475).

[^f00019]: 1980 c. 20; section 31(3) was repealed by section 67(6) and Schedule 6 to the Education (No 2) Act 1986.

[^f00020]: 1986 c. 61; section 51(1) came into force on the 1st September 1987.

[^f00021]: 1953 c. 33; section 7 was repealed by section 38(6) and Schedule 7 to the Education Act 1980.

[^f00022]: S.I. 1978/1096, to which there are amendments not relevant to these Regulations.

[^f00023]: S.I. 1959/364, revoked by S.I. 1982/106.

[^f00024]: 1980 c. 20; section 27 was repealed and replaced by section 218 of the Education Reform Act 1988 with effect from 1st April 1989.

[^f00025]: 1988 c. 40; the Education (Teachers) Regulations 1989 (S.I. 1989/1319) come into force on 1st September 1989 and revoke S.I. 1982/106.

[^f00026]: 1981 c. 61.

[^f00027]: 1968 c. 46; section 63 was amended by the National Health Service Reorganisation Act 1973 (c. 32), section 57, Schedule 4, paragraph 124 and Schedule 5, the National Health Service Act 1977 (c. 49), section 129, Schedule 15, paragraph 45 and Schedule 16, the National Health Service (Scotland) Act 1978 (c. 29), section 109, Schedule 16, paragraph 26(2) and Schedule 17, the Health Services Act 1980 (c. 53), sections 1, 2 and Schedule 1, Part I, paragraph 19(3), the Local Government Act 1985 (c. 51), section 102(2) and Schedule 17 and the Family Practitioner Committee (Consequential Modifications) Order (S.I. 1985/39), article 6(1).

[^f00028]: 1976 c. 36.

[^f00029]: 1975 c. 14; section 38 was amended by paragraph 12 of Schedule 4 to the Child Benefit Act 1975 (c. 61) and by section 45 of the Social Security Act 1986 (c. 50).

[^f00030]: 1980 c. 5.

[^f00031]: 1975 c. 72; a new section 34 was substituted by section 64 of the Domestic Proceedings and Magistrates' Courts Act 1978 (c. 22).

[^f00032]: Section 37A was inserted by section 22 of the Social Security Pensions Act 1975 (c. 60).

[^f00033]: 1977 c. 5; the relevant Order currently in force is the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (S.I. 1983/883, amended by S.I. 1983/1116, 1521, 1986/592 and 1987/165).

[^f00034]: 1988 c. 1.

[^f00035]: 1970 c. 10.

[^f00036]: 1981 c. 35.

[^f00037]: 1987 c. 16.

[^f00038]: 1962 c. 12.

[^f00039]: S.I. 1971/1297.

[^f00040]: S.I. 1972/1124, 1973/1233, 1298, 1644, 1974/1231, 1540.

[^f00041]: 1976 c. 71.

[^f00042]: 1986 c. 50.

[^f00043]: S.I. 1987/1969.

[^f00044]: 1975 c. 14; section 37A was inserted by section 22 of the Social Security Pensions Act 1975 (c. 60).

[^f00045]: 1977 c. 5; the relevant Order currently in force is the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (S.I. 1983/883, amended by S.I. 1983/1116, 1521, 1986/592 and 1987/165).

[^f00046]: 1982 c. 24; the statutory schemes under Part II were constituted by the provisions of the Housing Benefits Regulations 1985 (S.I. 1985/677, to which there were amendments, the only relevant ones being contained in S.I. 1986/1009).

[^f00047]: The Scheme under Part II is currently constituted by the provisions of the Housing Benefit (General) Regulations 1987 (S.I. 1987/1971), as amended by section 24(3) of the Employment Act 1988 (c. 19), S.I. 1988/661, 1444 and 1971.

[^f00048]: 1976 c. 36.

[^f00049]: 1975 c. 14; section 38 was amended by paragraph 12 of Schedule 4 to the Child Benefit Act 1975 (c. 61) and by section 45 of the Social Security Act 1986 (c. 50).

[^f00050]: 1980 c. 5.

[^f00051]: 1975 c. 72; a new section 34 was substituted by section 64 of the Domestic Proceedings and Magistrates' Courts Act 1978 (c. 22).

[^f00052]: OJ No L222, 8.8.86, p.17.

[^f00053]: OJ No L166, 25.6.87, p.20.

[^f00054]: 1971 c. 68.

[^f00055]: 1988 c. 1.

[^f00056]: 1975 c. 72.

[^f00057]: 1925 c. 19.

[^f00058]: 1976 c. 40.

[^f00059]: 1970 c. 10.

[^f00060]: 1987 c. 16.

[^f00061]: 1987 c. 51.

[^f00062]: 1975 c. 72; a new section 34 was substituted by section 64 of the Domestic Proceedings and Magistrates Courts Act 1978 (c. 22).

[^f00063]: 1977 c. 49, amended by paragraph 11 of Schedule 3 to the Health and Social Security Act 1984 (c. 48).

[^f00064]: 1978 c. 29.

[^f00065]: S.I. 1972/1265 (N.I. 14).