Terms & Conditions

[arenton]

Hello folks,

I wonder if i could ask for some advice on the amounts we can disregard from a claimant’s income when they make a contribution to a student’s maintenance. I have read paras 17 & 18 of Schedule 4 of the old HB regs- but i am still a bit confused.

I’m fine with para 17- where the parents have been [b:e46fe09491]assessed[/b:e46fe09491] and are [b:e46fe09491]required[/b:e46fe09491] to make a contribution to the student’s grant- as long as they are paying it- we can allow the amount they are paying as a deduction from their income.

But it is para 18 i am less sure of. Am i correct in saying that this para allows us to disregard payments made [b:e46fe09491]voluntarily[/b:e46fe09491] towards a student’s maintenance.

It seems this can only be done where no grant is paid, or where a discretionary grant is paid , or a bursary, or scholarship is paid.

Does it matter whether or not the student gets a student loan?

Any help would be most appreciated.

[Kevin D]

This post assumes that the wording in Sch 5, para 20 of the 2006 Regs is the same as the 1987 regs as at 5 Mar 2005.

Para 20(1)(a) requires that the student is NOT in receipt of [b:fa6e9b796f]any[/b:fa6e9b796f] award, grant or [u:fa6e9b796f]student loan[/u:fa6e9b796f].

So, if the student is receiving a student loan, para 20 cannot be applied.

However, assuming there is no loan (or any of the other types of income mentioned in sub para 1(a)), the amount of the disregard is limited to the amounts specified in Para 20(2).

At least that’s my reading of it…. Hope it helps.

[arenton]

Hello again,

Thanks very much for your help Kevin D.

I have read the bit of the new schedule 5 that you refer to but i’m still not sure???

20(1)(a) certainly says that the disregard from the claimant’s income only applies where NO award, grant, or student loan is received (by the student),

but then 20(1)(b) says-

or the disregard is allowed where the student IS getting an award, bursary, scholarship or allowance???

So i’m kind of reading para 20 in schedule 5 as saying-

Where the claimant pays the money to the maintenance of their son or daughter (who is under 25)-

-where NO award, grant, or loan is paid- we can allow a weekly deduction of the value of a personal allowance for a single claimant under 25 (£45.50).

-where an award, bursary, scholarship, or other allowance is received- we can allow a weekly deduction of the £45.50 LESS the weekly amount of any of these payments received.

In other words the presence of a student loan only stops this unearned income deduction if the student receives NO other amounts whatsoever?

But (because 20(1)(b) does not mention loans), if they DO have a student loan, a deduction can still be allowed as long as they get an award, bursary, scholarship or other allowance IN ADDITION to the loan (20(1)(b))???

What do you think????

[Author]

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