The Education (Student Support) (No.2) Regulations 2008

• (f) the student was looked after by a local authority (within the meaning of section 22 of the Children Act 1989⁸¹) throughout any three-month period ending on or after the date on which the student reached the age of 16 and before the first day of the first academic year of the course (“the relevant period”) provided that the student has not in fact at any time during the relevant period been under the charge or control of the student’s parents;

• (g) the student’s parents are residing outside the European Community and the Secretary of State is satisfied that either—

• (i) the assessment of the household income by reference to their residual income would place those parents in jeopardy; or

• (ii) it would not be reasonably practicable for those parents as a result of the calculation of any contribution under paragraph 8 or 9 to send any relevant funds to the United Kingdom;

• (h) paragraph 5(9) applies and the parent whom the Secretary of State considered the more appropriate for the purposes of that paragraph has died (irrespective of whether the parent in question had a partner);

• (i) in the case of a student who began the current course before 1st September 2009, the student is a member of a religious order who resides in a house of that order;

• (j) as at the first day of the relevant year, the student has the care of a person under the age of 18; or

• (k) the student (“A”) has supported A out of A’s earnings for any period or periods ending before the first academic year of the course which periods together aggregate not less than three years, and for the purposes of this sub-paragraph A is to be treated as supporting A out of A’s earnings during any period in which—

• (i) A was participating in arrangements for training for the unemployed under any scheme operated by, sponsored or funded by any state authority or agency, whether national, regional or local (“a relevant authority”);

• (ii) A was in receipt of benefit payable by any relevant authority in respect of a person who is available for employment but who is unemployed;

• (iii) A was available for employment and had complied with any requirement of registration imposed by a relevant authority as a condition of entitlement for participation in arrangements for training or receipt of benefit;

• (iv) A held a state studentship or comparable award; or

• (v) A received any pension, allowance or other benefit paid by any person by reason of a disability to which the Secretary of State is subject, or by reason of confinement, injury or sickness.

• (2) An eligible student who qualifies as an independent eligible student under paragraph 2(1)(j) in respect of an academic year of a designated course retains that status for the duration of the period of eligibility.

Household income

3

• (1) The amount of an eligible student’s contribution depends on the household income.

• (2) The household income is—

• (a) in the case of an eligible student who is not an independent eligible student, the residual income of the eligible student aggregated with the residual income of the eligible student’s parents (subject to paragraph 5 (9)) and—

• (i) in the case of a new eligible student who began the specified designated course before 1st September 2005, the residual income of the partner (other than a partner within the meaning of paragraph 1(j)(iv)) of the student’s parent (provided that the Secretary of State has selected that parent under paragraph 5(9); or

• (ii) in the case of a new eligible student who began the specified designated course on or after 1st September 2005, the residual income of the partner of the student’s parent (provided that the Secretary of State has selected that parent under paragraph 5(9));

• (b) in the case of an independent eligible student who has a partner, the residual income of the eligible student aggregated with the residual income of the eligible student’s partner (subject to sub-paragraph (4)); or

• (c) in the case of an independent eligible student who does not have a partner, the residual income of the eligible student.

• (3) In determining the household income under sub-paragraph (2), there is deducted the sum of £1,130—

• (a) for each child wholly or mainly financially dependent on the eligible student or the eligible student’s partner; or

• (b) for each child other than the eligible student wholly or mainly financially dependent on the eligible student’s parent or the eligible student’s parent’s partner whose residual income is being taken into account.

• (4) For the purpose of calculating the contribution payable in respect of a parent student, the residual income of the parent student’s partner must not be aggregated under paragraph (b) of sub-paragraph (2) in the case of a parent student whose child or whose partner’s child holds an award in respect of which the household income is calculated with reference to the residual income of the parent student or of the parent student’s partner or of both.

Calculation of eligible student’s residual income

4

• (1) For the purpose of determining the residual income of an eligible student, there is deducted from the student’s taxable income (unless already deducted in determining taxable income) the aggregate of any amounts falling within any of the following sub-paragraphs—

• (a) any remuneration for work done during any academic year of the eligible student’s course, provided that such remuneration does not include any sums paid in respect of any period for which the student has leave of absence or is relieved of the student’s normal duties for the purpose of attending that course;

• (b) the gross amount of any premium or other sum paid by the eligible student in relation to a pension (not being a pension payable under a policy of life insurance) in respect of which relief is given under section 273 of the Income and Corporation Taxes Act 1988⁸² or under section 188 of the Finance Act 2004⁸³, or where the eligible student’s income is computed for the purposes of the income tax legislation of another Member State, the gross amount of any such premium or sum in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts.

• (2) Where the only paragraph in Part 2 of Schedule 1 into which an eligible student falls is paragraph 9 and the student’s income arises from sources or under legislation different from sources or legislation normally relevant to a person referred to in paragraph 9 of Schedule 1, the student’s income is not disregarded in accordance with sub-paragraph (1) but is instead disregarded to the extent necessary to ensure that the student is treated no less favourably than a person who is referred to in any paragraph of Part 2 of Schedule 1 would be treated if in similar circumstances and in receipt of similar income.

• (3) Where the eligible student receives income in a currency other than sterling, the value of that income for the purpose of this paragraph is—

• (a) if the student purchases sterling with the income, the amount of sterling the student so receives;

• (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 Statistics⁸⁴.

Calculation of parent’s residual income

5

• (1) For the purposes of determining the taxable income of an eligible student’s parent, (“A” in this paragraph) any deductions which fall to be made or exemptions which are permitted—

• (a) by way of personal reliefs provided for in Chapter 1 of Part VII of the Income and Corporation Taxes Act 1988⁸⁵ or, where the income is computed for the purposes of the income tax legislation of another Member State, any comparable personal reliefs;

• (b) pursuant to any enactment or rule of law under which payments which would otherwise under United Kingdom law form part of a person’s income are not treated as such; or

• (c) under sub-paragraph (2)

must not be made or permitted.

• (2) For the purposes of determining the residual income of A there is deducted from the taxable income determined under sub-paragraph (1) the aggregate of any amounts falling within any of the following sub-paragraphs—

• (a) the gross amount of any premium or sum relating to a pension (not being a premium payable under a policy of life assurance) in respect of which relief is given under section 273 of the Income and Corporation Taxes Act 1988 or under section 188 of the Finance Act 2004, or where the income is computed for the purposes of the income tax legislation of another Member State, the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

• (b) in any case where income is computed for the purposes of the Income Tax Acts by virtue of sub-paragraph (6) any sums equivalent to the deduction mentioned in paragraph (a) of this sub-paragraph, provided that any sums so deducted do not exceed the deductions which would be made if the whole of A’s income were in fact income for the purposes of the Income Tax Acts;

• (c) where A is a parent student or A holds a statutory award, £1,130.

• (3) Where the Secretary of State is satisfied that the residual income of A in the financial year beginning immediately before the relevant year (“the current financial year”) is likely to be not more than 95 per cent. of the sterling value of A’s residual income in the prior financial year the Secretary of State may, for the purpose of enabling the eligible student to attend the course without hardship, ascertain A’s residual income for the current financial year.

• (4) In an academic year immediately following one in which the Secretary of State has ascertained A’s residual income for the current financial year under sub-paragraph (3), the Secretary of State must ascertain A’s residual income in the preceding financial year.

• (5) Where A satisfies the Secretary of State that A’s income is wholly or mainly derived from the profits of a business or profession carried on by A, then any reference in this Schedule to a prior financial year means the earliest period of twelve months which ends after the start of the prior financial year and in respect of which accounts are kept relating to that business or profession.

• (6) Where A is in receipt of any income which does not form part of A’s income for the purposes of the Income Tax Acts or the income tax legislation of another Member State by reason only that—

• (a) A is not resident, ordinarily resident or domiciled in the United Kingdom, or where A’s income is computed as for the purposes of the income tax legislation of another Member State, not so resident, ordinarily resident or domiciled in that Member State;

• (b) the income does not arise in the United Kingdom, or where A’s income is computed as for the purposes of the income tax legislation of another Member State, does not arise in that Member State; or

• (c) the income arises from an office, service or employment, income from which is exempt from tax in pursuance of any legislation,

A’s taxable income for the purposes of this Schedule is computed as though the income under this sub-paragraph were part of A’s income for the purposes of the Income Tax Acts or the income tax legislation of another Member State, as the case may be.

• (7) Where A’s income is computed as for the purposes of the income tax legislation of another Member State, it is computed under the provisions of this Schedule in the currency of that Member State and A’s income for the purposes of this Schedule is the sterling value of that income determined in accordance with the rate for the month in which the last day of the financial year in question falls, as published by the Office for National Statistics.

• (8) Where one of the eligible student’s parents dies either before or during the relevant year and that parent’s income has been or would be taken into account for the purpose of determining the household income, the household income is—

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

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

• (i) the appropriate proportion of the household income determined by reference to the income of both parents, being the proportion in respect of that part of the relevant year during which both parents were alive; and

• (ii) the appropriate proportion of the household income determined by reference to the income of the surviving parent, being the proportion in respect of that part of the relevant year remaining after the death of the other parent.

• (9) Where the Secretary of State determines that the parents are separated for the duration of the relevant year, the household income is determined by reference to the income of whichever parent the Secretary of State considers the more appropriate under the circumstances.

• (10) Where the Secretary of State determines that the parents have separated in the course of the relevant year, the household income is determined by reference to the aggregate of—

• (a) the appropriate proportion of the household income determined in accordance with sub-paragraph (9), being the proportion in respect of that part of the relevant year during which the parents are separated; and

• (b) the appropriate proportion of the household income determined otherwise in respect of the remainder of the relevant year.

Calculation of eligible student’s partner’s residual income

6

• (1) Subject to sub-paragraphs (2), (3) and (4) of this paragraph, an eligible student’s partner’s income is determined in accordance with paragraph 5 (other than sub-paragraphs (8), (9) and (10) of paragraph 5), references to the parent being construed as references to the eligible student’s partner.

• (2) Where the Secretary of State determines that the eligible student and the student’s partner are separated for the duration of the relevant year, the partner’s income is not taken into account in determining the household income.

• (3) Where the Secretary of State determines that the eligible student and the student’s partner have separated in the course of the relevant year, the partner’s income is determined by reference to the partner’s income under sub-paragraph (1) divided by fifty-two and multiplied by the number of complete weeks in the relevant year for which the Secretary of State determines that the eligible student and the student’s partner are not separated.

• (4) Where an eligible student has more than one partner in any one academic year, the provisions of this paragraph apply in relation to each.

Calculation of parent’s partner’s residual income

7

The income of a new eligible student’s parent’s partner whose income is part of the household income by virtue of paragraph 3(2)(a) is determined in accordance with paragraph 6, references to the eligible student’s partner being construed as references to the new eligible student’s parent’s partner, and references to the eligible student being construed as references to the new eligible student’s parent.

Calculation of contribution – old system students

8

• (1) The contribution payable in relation to an old system student who is not an independent eligible student or is an independent eligible student with a partner is—

• (a) in any case where the household income is £23,660 or more, £45 with the addition of £1 for every complete £9.27 by which the household income exceeds £23,660; and

• (b) in any case where the household income is less than £23,660, nil.

• (2) The contribution payable in relation to an old system student who is an independent eligible student without a partner is—

• (a) in any case where the household income is £11,020 or more, £45 with the addition of £1 for every complete £9.27 by which the household income exceeds £11,020; and

• (b) in any case where the household income is less than £11,020, nil.

• (3) The amount of the contribution payable under sub-paragraph (1) or (2) must in no case exceed £7,998.

• (4) The contribution may be adjusted in accordance with paragraph 10.

• (5) Where sub-paragraph (6) applies, the aggregate contributions must not exceed £7,998.

• (6) This sub-paragraph applies where—

• (a) a contribution is payable in relation to two or more eligible students (other than current system students) in respect of the same income under paragraph 5 or, where the relevant parent’s partner’s residual income is taken into account, under paragraphs 5 and 7; or

• (b) the household income consists of the residual income of an independent eligible student and the student’s partner where both hold a statutory award.

Calculation of contribution – current system students

9

• (1) In relation to an eligible student who is a current system student, the contribution payable is—

• (a) in any case where the household income exceeds £39,796, £1 for every complete £9.27 by which the household income exceeds £39,796; and

• (b) in any case where the household income is £39,796 or less, nil.

• (2) The contribution must not in any case exceed £6,210.

• (3) The contribution may be adjusted in accordance with paragraph 10.

• (4) Where sub-paragraph (5) applies, the aggregate contributions must not exceed £6,210.

• (5) This sub-paragraph applies where—

• (a) a contribution is payable in relation to two or more eligible students (other than old system students) in respect of the same income under paragraph 5 or, where the relevant parent’s partner’s residual income is taken into account, under paragraphs 5 and 7; or

• (b) the household income consists of the residual income of an independent eligible student and the student’s partner where both hold a statutory award.

Split contributions

10

Where the same household income is used to assess the amount of a statutory award for which two or more persons qualify, the contribution payable in respect of the eligible student is divided by the number of such persons.

SCHEDULE 5 — AMENDMENT OF THE EDUCATION (STUDENT SUPPORT) REGULATIONS 2008

Amendment of regulation 2 of the 2008 Regulations

1

In regulation 2 (1) in the definition of “2008 cohort student” after sub-paragraph (a), insert

(aa) the current course leads to qualification as a social worker.

Amendment of regulation 4(10) of the 2008 Regulations

2

In regulation 4(10)(a)(i) omit “or” and insert—

(iA) an eligible distance learning student in connection with a designated distance learning course; or

3

In regulation 4(10)(b) after “as an eligible part-time student”, insert “, as an eligible distance learning student”.

Amendment of regulation 104 of the 2008 Regulations

4

In regulation 104, after paragraph (7) insert—

(7A) – (1) Subject to paragraph (7C), no support under Part 5 is due in respect of any day of an academic year on which the eligible student is a prisoner, unless in the opinion of the Secretary of State it would be appropriate in all the circumstances for support to be paid in respect of that day. (7B) Paragraph (7A) does not apply in respect of disabled student’s allowance. (7C) In deciding whether it would be appropriate for support to be due under paragraph (7A) the circumstances to which the Secretary of State must have regard include the financial hardship not paying the support would cause and whether not paying the support would affect the student’s ability to continue the course.

Amendment of regulation 110 of the 2008 Regulations

5

In regulation 110, after paragraph (8) insert—

(8A) Subject to paragraph (8B), no support under Part 6 is due in respect of any day of an academic year on which the eligible student is a prisoner, unless in the opinion of the Secretary of State it would be appropriate in all the circumstances for support to be paid in respect of that day. (8B) In deciding whether it would be appropriate for support to be due under paragraph (8A) the circumstances to which the Secretary of State must have regard include the financial hardship which not paying the support would cause and whether not paying the support would affect the student’s ability to continue the course.

Amendment of regulation 120(2)(a) of the 2008 Regulations

6

In regulation 120(2)(a) for “£7.60”, substitute “£7.58”

Amendment to regulation 132(9) of the 2008 Regulations

7

In regulation 132(9)(a)(i) omit “or” and insert—

(iA) an eligible distance learning student in connection with a designated distance learning course other than the current designated distance learning course; or

8

In regulation 132(9)(b) after “as an eligible student”, insert “, as an eligible distance learning student”.

Amendment of Part 2 of Schedule 1 of the 2008 Regulations

9

For paragraph 8 (1) (b) and (c) substitute—

(b) was ordinarily resident in England and settled in the United Kingdom immediately before leaving the United Kingdom and who has exercised a right of residence; (c) is ordinarily resident in the United Kingdom on the day on which the first term of the first academic year actually begins;

Signed

Bill Rammell — Minister of State — Department for Innovation, Universities and Skills — 17th June 2008

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations provide for support for students taking designated higher education courses in respect of an academic year beginning on or after 1st September 2009.

These Regulations are based on the Education (Student Support) Regulations 2008 (as amended) (the “2008 Regulations”) to which they make a number of amendments and changes, some of which are of a minor and drafting nature. Changes of substance other than increases in rates of grants and loans are described below.

These Regulations revoke the 2008 Regulations and the Education (Student Support) (Amendment) Regulations 2008. Regulation 4 sets out the extent of the revocation.

Regulation 2 includes a definition of “equivalent and lower level qualification”. A new student will be excluded from support, except targeted support, for a second full-time, part-time or full time distance learning course beginning on or after 1st September 2009, where the student already holds an equivalent or higher level higher education qualification from an institution whether or not in the United Kingdom. Parts 4, 6, 7, 11 and 12 set out the detailed provisions in regard to fee and maintenance (grant and loan) support.

Part 4 makes changes to the definition of “previous course” and its effect on eligibility for support. From 1st September 2009, a new student with a lower level higher education qualification will be eligible for fee and maintenance grant support to “top up” a higher level qualification only. A new student who has studied on a previous full-time course, part-time course for the initial training of teachers, full-time distance learning or compressed degree course, but who did not achieve a qualification will have years of previous course deducted from their fee and maintenance grant entitlement if their previous course was taken at a publicly funded institution whether or not in the United Kingdom.

Regulation 2 and the definition of “2008 cohort student” is changed to include graduates undertaking a second undergraduate higher education course in social work. Part 6 sets out the support available by way of loans for living costs. The 2008 Regulations are amended accordingly. Support is also removed for a graduate student beginning a full-time undergraduate course on or after 1st September 2009 which leads to a qualification as a landscape architect, landscape designer, landscape manager, town planner or town and country planner. Parts 2 and 6 set out the provisions on designated courses and loans for living costs.

Regulation 2 and Part 4 extend the definition of “end-on course” and entitlement to fee loans for a current system student who undertakes a full-time first degree course (other than a first degree course for the initial training of teachers) beginning on or after 1st September 2009 after ceasing to attend a lower level full-time or part-time higher education course, compressed degree course or a designated distance learning course.

Regulation 2 introduces a new definition of “type 3 teacher training student” for a new and continuing student undertaking from 1st September 2009 a part-time undergraduate course of initial teacher training where the periods of full-time attendance (including teaching practice) during the academic year are from 6 to 10 weeks. Parts 5 and 6 provide for the amounts of grants and loans to which a student is eligible.

Parts 2, 11 and 12 amend the definition of designated full-time, part-time or distance learning courses for new students so that from 1st September 2009 any course is excluded that leads to the award of a professional qualification where a first degree would normally be required for entry to a course leading to that professional qualification.

Parts 5 and 6 introduce provisions for a full-time new or continuing student who spends part of an academic year in prison. Such a student will qualify for grants and loans for living costs on a pro-rated daily basis for the days that the student is not in prison. The 2008 Regulations have been amended accordingly.

Minor changes have been made to simplify the support system. Part 6 removes the ineligibility for support for new and continuing students undertaking part-time or full-time distance learning courses where they are in receipt of Scottish healthcare allowances. Part 10 removes the separate support arrangements for new students undertaking full-time courses where they are living in houses of religious orders. Parts 2, 11 and 12 have been amended to exclude Academies as institutions whose courses can be designated for support.

A further minor change has been made to Parts 2 and 12 increasing eligibility for support of full-time and part-time students where they have already been determined by the Secretary of State as being eligible students in connection with a previous designated distance learning course and that status has been converted or transferred from that course to the current course. The 2008 Regulations have been amended accordingly

Schedule 1 extends eligibility for support to students who are settled in the United Kingdom but left England and exercised a right of residence in the EEA or Switzerland, and subsequently returned to the United Kingdom to study at a higher education institution. The 2008 Regulations have been amended accordingly.

Schedule 4 makes new provisions for new and continuing full-time students from 1st September 2009 in regard to financial assessment. The Regulations replace preceding financial year with prior financial year as the basis of income assessment except in regard to certain independent students. The reassessment threshold is changed from 85% or less of assessed income to 95% or less. The provisions relating to “split” contributions (which apply where the household income is used to assess the support for more than one student) have been simplified so that where the same household income is used to assess the amount of support for which two or more students qualify, the contribution for each eligible student is divided by the number of students.

Schedule 4 also introduces an adjustment to the calculation of a student’s contribution towards support so that household income does not include any benefits under a pension arrangement or pension benefits paid to an ex-partner pursuant to a court order made under the Matrimonial Causes Act 1973 or the Civil Partnership Act 2004. Similarly, where a household is in receipt of any benefits under a pension arrangement or pension benefits pursuant to such a court order this is included within the calculation of household income.

Apart from increases to amounts in line with inflation, the income thresholds and assessments of loans for living costs and maintenance grants are not changed. A minor amendment has been made to an incorrect taper amount in regulation 120 of the 2008 Regulations.

An impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities or voluntary bodies. The impact on the public sector is minimal.

Footnotes