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The Armed Forces (Enhanced Learning Credit Scheme and Further and Higher Education Commitment Scheme) Order 2012

S.I. 2012/1796 · Made 9 July 2012 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 30 March 2021.

Pensions

Made 9th July 2012

Laid before Parliament 12th July 2012

Coming into force 2nd September 2012

The Secretary of State, in exercise of the powers conferred by sections 1(1) and (3) of the Armed Forces (Pensions and Compensation) Act 2004f1 makes the following Order:

Annotations to the whole text

Footnotes

f1

2004 c. 32.

Contents

  1. Part 1: PRELIMINARY
  2. 1Citation and Commencement
  3. 2Interpretation
  4. 3Definition of “eligible adult dependant”
  5. Part 2: ESTABLISHMENT OF THE ELC AND FHEC SCHEMES
  6. 4Article 4
  7. Part 3: THE ENHANCED LEARNING CREDIT SCHEME
  8. 5AMembership of the ELC Scheme
  9. 5Registration as a member of the ELC Scheme Repealed
  10. 6Eligibility conditions for payments under the ELC Scheme
  11. 7Eligibility conditions in certain cases of attributable medical discharge
  12. 8Entitlement of eligible adult dependants in certain cases of death or attributable medical discharge
  13. 9Payments under the ELC Scheme
  14. 9ALower tier payments
  15. 9BAggregated lower tier payments
  16. 9CHigher tier payments
  17. Part 4: THE FURTHER AND HIGHER EDUCATION COMMITMENT SCHEME
  18. 10Eligibility conditions for payments to service leavers under the FHEC Scheme
  19. 11Entitlement of eligible adult dependants under the FHEC Scheme in certain cases of death or attributable medical discharge
  20. 12Payments under the FHEC Scheme
  21. Signature
  22. Explanatory note

1Citation and CommencementI1

This Order may be cited as the Armed Forces (Enhanced Learning Credit Scheme and Further and Higher Education Commitment Scheme) Order 2012 and comes into force on 2nd September 2012.

2InterpretationI1

In this Order—

  • “the 2004 Act” means the Armed Forces (Pensions and Compensation) Act 2004;

  • “academic year” means the period of twelve months beginning on 1st January, 1st April, 1st July or 1st September of the calendar year in which the academic year of the course in question begins according to whether that academic year begins on or after 1st January and before 1st April, on or after 1st April and before 1st July, on or after 1st July and before 1st August, or on or after 1 August and on or before 31 December, respectively;

  • “additional adoption leave” means leave which, in the opinion of the Defence Council, corresponds to additional adoption leave prescribed in regulations made under section 75B(2) and (3) of the Employment Rights Act 1996f1;

  • “additional maternity leave” means leave which, in the opinion of the Defence Council, corresponds to additional maternity leave prescribed in regulations made under section 73(2) and (3) of the Employment Rights Act 1996f2;

  • F1“aggregated lower tier payment” is a payment in accordance with article 9B(1);

  • F2...

  • “applicant” means a person who has applied for a payment under the ELC Scheme or the FHEC Scheme;

  • “approved learning provider” means an establishment on the Scheme administrator’s list of approved providers;

  • F3...

  • ...

  • “disablement pension” means retired pay or pension awarded under article 6 of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006;

  • “discharged on attributable medical grounds” means that a person has been discharged from service on the grounds that they are medically unfit to continue in service due to an injury or illness caused wholly or predominantly by service or predominantly worsened by service and the phrase “attributable medical discharge” is to be construed accordingly;

  • “ELC Scheme” means the Enhanced Learning Credit Scheme established by article 4(1);

  • “FHEC Scheme” means the Further and Higher Education Commitment Scheme established by article 4(2);

  • “guaranteed income payment” means a guaranteed income payment paid under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011; and

  • “higher level learning” means full or part time study towards the achievement of a higher level learning qualification;

  • “higher level learning qualification” means a qualification at Level 3 or above on the Qualifications and Credit Frameworkf3 or other equivalent qualification (including an equivalent vocational qualification);

  • “higher tier payment” F4is a payment in accordance with article 9C(1);

  • “individual resettlement training costs grant” means a grant paid towards the cost of training to enhance skills and qualifications in preparation for new employment;

  • “in-service payment” is a payment made under the enhanced learning credit scheme established by the Secretary of State and set out in Defence Direction and Guidance on Training, Education and Skillsf4 during qualifying service and on or after 1st April 2016;

  • “lower tier payment” F5is a payment in accordance with article 9A(1);

  • “ordinary adoption leave” means leave which, in the opinion of the Defence Council, corresponds to ordinary adoption leave prescribed in regulations made under section 75A(2) and (2A) of the Employment Rights Act 1996f5;

  • “ordinary maternity leave” means leave which, in the opinion of the Defence Council, corresponds to ordinary maternity leave prescribed in regulations made under section 71(2) and (3) of the Employment Rights Act 1996f6;

  • “F6... paternity leave” means leave which, in the opinion of the Defence Council, corresponds to paternity leave within the meaning of regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002f7;

  • “Phase 1 training” means all initial training to recruits into the armed forces to provide basic military skills;

  • “Phase 2 training” means—

    1. (a)

      initial individual specialisation training, and

    2. (b)

      technical training,

    following phase 1 training;

  • “publicly funded” means maintained or assisted by recurrent grants of public funds;

  • “qualification level learning” means learning leading to —

    1. (a)

      a first full Level 3 qualification as defined by the Qualifications and Credit Framework;

    2. (b)

      a first vocational qualification which is the equivalent of a qualification falling within paragraph (a);

    3. (c)

      a first undergraduate degree (including a foundation degree);

    4. (d)

      a first Higher National Certificate or first Higher National Diploma for which the entry qualification is lower than a degree; or

    5. (e)

      such qualifications in Scotland which are the equivalent of qualifications falling within paragraphs (a) to (d).

  • “qualifying service” means service in the armed forces and includes time spent on ordinary maternity leave, additional maternity leave, F7paternity leave, F8shared parental leave additional paternity leave, ordinary adoption leave or additional adoption leave, but does not include time spent on any unpaid career break;

  • “senior responsible officer” means the person within each single service with overall responsibility for the ELC Scheme;

  • “service leaver” means a person who has ceased to be a member of the armed forces;

  • “six month window” means the six month period which commences on the eighth anniversary of enlistment or commission;

  • “the Scheme administrator” means the person appointed by the Secretary of State under section 1(3) of the 2004 Act to administer the ELC Scheme and the FHEC Scheme;

  • F9“shared parental leave” means leave under section 75E or 75G of the Employment Rights Act 1996 F10, or Articles 107E or 107G of the Employment Rights (Northern Ireland) Order 1996;

  • “tuition fees” means the costs charged by the approved learning provider which may include registration, examination and accreditation fees.

3Definition of “eligible adult dependant”I1

(1)

A person is an eligible adult dependant if they are the spouse, civil partner or eligible partner of a member of the armed forces, or, where a member of the armed forces has died, they are the surviving spouse, surviving civil partner or surviving eligible partner of the deceased and in this paragraph “eligible partner” and “surviving eligible partner” have the meaning set out in paragraphs (2) and (3).

F1(2)

A person is an eligible partner of a member of the armed forces if the Secretary of State is satisfied that—

(a)

the person and the member are cohabiting as partners in an exclusive and substantial relationship;

(b)

the person and the member are not prevented from marrying or entering into a civil partnership; and

(c)

either the person is financially dependent on the member or the person and the member are financially interdependent.

(3)

A person is a surviving eligible partner of a member of the armed forces if the Secretary of State is satisfied that at the date of the member’s death—

(a)

the person and the member were cohabiting as partners in an exclusive and substantial relationship;

(b)

the person and the member were not prevented from marrying or entering into a civil partnership; and

(c)

either the person was financially dependent on the member or the person and the member were financially interdependent.

4I1

(1)

The Scheme set out in Part 3 of this Order has effect and is to be known as “the ELC Scheme”.

(2)

The Scheme set out in Part 4 of this Order has effect and is to be known as “the FHEC Scheme”.

(3)

The Scheme Administrator shall administer both Schemes.

5AMembership of the ELC SchemeF1

(1)

A person is a member of the ELC Scheme if the person was registered as a member before 1st April 2016.

(2)

A person who is not within paragraph (1) becomes a member of the ELC Scheme if the person—

(a)

is in service in the armed forces at any time on or after 1st April 2016; and

(b)

completes or has completed Phase 1 training.

5Registration as a member of the ELC SchemeF1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6Eligibility conditions for payments under the ELC SchemeI1

(1)

A service leaver is eligible for payments under the ELC Scheme for higher level learning if conditions A to D of this article are met.

F1(2)

Condition A is that the service leaver’s course of higher level learning commences before the entitlement time limit.

(3)

Condition B is that the service leaver is a member of the ELC Scheme.

(4)

Condition C is that the service leaver has completed eligible service.

(5)

Condition D is that the service leaver is not applying for, or in receipt of, any other payment from public funds towards the cost of tuition fees for higher level learning unless such payment is either an individual resettlement training costs grant or is made under the FHEC Scheme.

F2(5A)

In this article “the entitlement time limit” means—

(a)

for a service leaver who ceased to be a member of the armed forces before 1st April F32016, the tenth anniversary of their ceasing to be a member of the armed forces;

F4(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

subject to sub-paragraph (d), for a service leaver who ceases to be a member of the armed forces on or after 1st April 2016, the fifth anniversary of their ceasing to be a member of the armed forces; and

(d)

for a service leaver discharged on attributable medical grounds on or after 1stApril 2011 who receives a disablement pension or a guaranteed income payment, the tenth anniversary of their ceasing to be a member of the armed forces.

F5(6)

In this article “eligible service” means—

(a)

in relation to a lower tier payment—

(i)

for a service leaver who has completed before 1st April 2016, or who completes before 1st April 2017, 4 years qualifying service, at least 4 years but less than 8 years qualifying service;

(ii)

for a service leaver who has completed less than 4 years qualifying service before 1st April 2017, at least 6 years but less than 8 years qualifying service;

(iii)

for a service leaver who becomes a member of the ELC Scheme on or after 1st April 2016, at least 6 years but less than 8 years qualifying service;

(b)

in relation to an aggregated lower tier payment, at least 6 years qualifying service completed on or after 1st April 2016; or

(c)

in relation to a higher tier payment, at least 8 years qualifying service.

(7)

The period of eligible service is to be calculated in accordance with paragraphs (8) to (10).

(8)

Subject to paragraph (9) and (10), the period of eligible service commences on—

(a)

for a person who registered as a member of the ELC Scheme, the date of enlistment or commission into the armed forces, unless sub-paragraph (b) applies;

(b)

for a person who was registered as a member of the ELC Scheme within the six month window and—

(i)

ceased to be a member of the armed forces before 1st April 2016, the first day of the six month window; or

(ii)

is a member of the armed forces on 1st April 2016, whichever is the later of 1st April 2000 and the date of enlistment or commission into the armed forces; or

(c)

for a person to whom article 5A(2) applies, whichever is the later of 1st April 2000 and the date of enlistment or commission.

(9)

Where—

(a)

a service leaver’s service in the armed forces commenced before 1st April 2003, and

(b)

they registered as a member of the ELC Scheme before 1st April 2004,

eligible service commences from whichever is the later of 1st April 2000 and the date of enlistment or commission.

F6(10)

Where before 1st April 2016 a service leaver had registered as a member of the ELC Scheme having satisfied the senior responsible officer that the member might register outside the time limits in force at the time—

(a)

if the service leaver’s service in the armed forces commenced before 1st April 2003, eligible service commences from whichever is the later of 1st April 2000 and the date of his or her enlistment or commission into the armed forces;

(b)

if the service leaver’s service in the armed forces commenced on or after 1st April 2003, eligible service commences from the date of enlistment or commission into the armed forces.

7Eligibility conditions in certain cases of attributable medical dischargeI1

(1)

A service leaver who has not met conditions A to D of article 6 is eligible for payments under the ELC Scheme if conditions A to E of this article are met.

(2)

Where this article applies any payment made under the ELC Scheme must be a lower tier payment.

(3)

Condition A is that the service leaver is discharged on attributable medical grounds on or after 1st November 2010.

F1(4)

Condition B is that the service leaver’s course of higher level learning commences before the entitlement time limit.

(5)

Condition C is that the service leaver is a member of the ELC Scheme.

(6)

Condition D is that the service leaver has completed Phase 1 and Phase 2 training.

(7)

Condition E is that the service leaver is not applying for, or in receipt of, any other payment from public funds towards the costs of tuition fees for higher level learning unless such payment is either an individual resettlement training costs grant or is made under the FHEC Scheme.

F2(8)

In this article “the entitlement time limit” means—

(a)

for a service leaver who ceased to be a member of the armed forces before 1st April F32016, the tenth anniversary of their ceasing to be a member of the armed forces;

F4(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

subject to sub-paragraph (d), for a service leaver who ceases to be a member of the armed forces on or after 1st April 2016, the fifth anniversary of their ceasing to be a member of the armed forces; and

(d)

for a service leaver discharged on attributable medical grounds on or after 1stApril 2011 who receives a disablement pension or a guaranteed income payment, the tenth anniversary of their ceasing to be a member of the armed forces.

8Entitlement of eligible adult dependants in certain cases of death or attributable medical dischargeI1

(1)

Where a member of the armed forces (A) dies and such death is caused either wholly or predominantly by service, an eligible adult dependant of A is eligible for payments under the ELC Scheme if —

(a)

the conditions in either paragraph (2) or (3) are met; and

(b)

the conditions in both paragraphs (11) and (12) are met.

(2)

The conditions are that—

(a)

A died on or after 1st April 2004, and

(b)

on the date of A’s death, A was a member of the ELC Scheme and had completed the eligible service specified in F1article 6(6)(a), 6(6)(b) or 6(6)(c).

(3)

The conditions are that—

(a)

A died on or after 1st November 2010, and

(b)

on the date of A’s death, A was a member of the ELC Scheme and had completed Phase 1 and Phase 2 training.

(4)

In any case where the conditions in paragraph (2) are met the payment made under the ELC Scheme must be—

(a)

a lower tier payment if on the date of A’s death, A had completed the eligible service specified in article 6(6)(a), F2...

F3(ab)

an aggregated lower tier payment if, on the date of A’s death, A had completed the eligible service specified in article 6(6)(b), or

(b)

a higher tier payment if on the date of A’s death, A had completed the eligible service specified in F4article 6(6)(c).

(5)

In any case where the conditions in paragraph (2) are not met but the conditions in paragraph (3) are met the payment made under the ELC Scheme must be a lower tier payment.

F5(5A)

In this article the period of eligible service is to be calculated in accordance with article 6(8) to (10).

(6)

Where a member of the armed forces (B) is discharged on attributable medical grounds, and due to the illness or injury which caused that attributable medical discharge, B is unable to undertake higher level learning, an eligible adult dependant of B is eligible for payments under the ELC Scheme if—

(a)

the conditions in either paragraph (7) or (8) are met; and

(b)

the conditions in both paragraphs (11) and (12) are met.

(7)

The conditions are that—

(a)

B’s attributable medical discharge occurred on or after 1st April 2004 F6and (if the discharge occurred on or after 1stApril 2017) B receives a disablement pension or a guaranteed income payment, and

(b)

on the date of B’s attributable medical discharge, B was a member of the ELC Scheme and had completed the eligible service specified in F7article 6(6)(a), 6(6)(b) or 6(6)(c).

(8)

The conditions are that—

(a)

B’s attributable medical discharge occurred on or after 1st November 2010 F8and (if the discharge occurred on or after 1st April 2017) B receives a disablement pension or a guaranteed income payment, and

(b)

on the date of B’s attributable medical discharge, B was a member of the ELC Scheme and had completed Phase 1 and Phase 2 training.

(9)

In any case where the conditions in paragraph (7) are met the payment made under the ELC Scheme must be—

(a)

a lower tier payment if on the date of B’s attributable medical discharge B had completed the eligible service specified in article 6(6)(a), F9...

F10(ab)

an aggregated lower tier payment if, on the date of B’s attributable medical discharge, B had completed the eligible service specified in article 6(6)(b), or

(b)

a higher tier payment if on the date of B’s attributable medical discharge B had completed the eligible service specified in F11article 6(6)(c).

(10)

In any case where the conditions in paragraph (7) are not met, but the conditions in paragraph (8) are met, the payment under the ELC Scheme must be a lower tier payment F12or aggregated lower tier payment.

(11)

The condition is that the eligible adult dependant must not be applying for, or in receipt of, any other payment from public funds towards the costs of tuition fees for higher level learning unless such funding is made under the FHEC scheme.

(12)

The condition is that the eligible adult dependant’s course of higher level learning commences before the tenth anniversary of the death of A or the attributable medical discharge of B.

9Payments under the ELC SchemeF1

(1)

A payment under the ELC Scheme must be made to an approved learning provider.

(2)

A payment referred to in paragraph (1) may be—

(a)

a lower tier payment;

(b)

an aggregated lower tier payment; or

(c)

a higher tier payment.

9ALower tier paymentsF1

(1)

A lower tier payment—

(a)

may be up to 80% of the total cost of the tuition fees for higher level learning; but

(b)

must not exceed £1,000 per financial year.

(2)

Only one lower tier payment may be made in any financial year in respect of the qualifying service of any one person.

(3)

A maximum of three lower tier payments may be made in respect of the qualifying service of any one person.

(4)

The number of lower tier payments that may be made in respect of that qualifying service must be reduced by the number of any in-service payments made in respect of that qualifying service.

(5)

Where a lower tier payment has already been made, an application for a lower tier payment must be supported by written evidence from the previous approved learning provider that the applicant satisfactorily completed the study to which the previous payment related.

(6)

No lower tier payment may be made in respect of the qualifying service of any one person if an aggregated lower tier payment has been made in respect of that service.

9BAggregated lower tier paymentsF1

(1)

An aggregated lower tier payment—

(a)

may be up to 80% of the total cost of the tuition fees for higher level learning; and

(b)

must exceed £1,000 but not exceed £3,000.

(2)

Only one aggregated lower tier payment may be made in respect of the qualifying service of any one person.

(3)

An aggregated lower tier payment may be made if—

(a)

a person is eligible for an aggregated lower tier payment under article 6, 7 or 8 (as the case may be);

(b)

no lower tier payment has been made in respect of that service; and

(c)

no in-service payment has been made in respect of that service.

9CHigher tier paymentsF1

(1)

A higher tier payment—

(a)

may be up to 80% of the total cost of tuition fees for higher level learning; but

(b)

must not exceed £2,000 per financial year.

(2)

Only one higher tier payment may be made in any financial year in respect of the qualifying service of any one person.

(3)

A maximum of three higher tier payments may be made in respect of the qualifying service of any one person.

(4)

The number of higher tier payments that may be made in respect of that qualifying service must be reduced by the number of in-service payments made in respect of that qualifying service.

(5)

Where a higher tier payment has already been made, an application for a higher tier payment must be supported by written evidence from the previous approved learning provider that the applicant satisfactorily completed the study to which the previous payment related.

(6)

No higher tier payment may be made in respect of the qualifying service of any one person if an aggregated lower tier payment has been made in respect of that service.

10Eligibility conditions for payments to service leavers under the FHEC SchemeF7I1

(1)

A service leaver is eligible for payments under the FHEC Scheme for qualification level learning if conditions A to I are met.

(2)

Condition A is that the service leaver left the armed forces on or after 17th July 2008.

F1(3)

Condition B is that the service leaver’s course of qualification level learning commences before the entitlement time limit.

(4)

Condition C is that the service leaver is a member of the ELC Scheme.

(5)

Condition D is that the service leaver has completed eligible service.

(6)

Condition E is that the service leaver is not applying for, or in receipt of, any other payment from public funds for tuition fees for qualification level learning unless such payment is made under the ELC Scheme.

(7)

Condition F is that if the service leaver has any remaining entitlement under the ELC Scheme then such entitlement must be used for the purposes of study under the FHEC Scheme.

(8)

Condition G is that the service leaver is applying for payment of tuition fees in order to undertake no less than half of a full-time course leading to a qualification which falls within the definition of qualification level learning.

(9)

Condition H is that the service leaver satisfies the eligibility requirements concerning assistance by way of allowances or support for tuition fees in the part of F2the United Kingdom where they are ordinarily resident.

(10)

Condition I is that the service leaver remains resident in the United Kingdom for the period of the qualification level learning.

F3(10A)

In this article “the entitlement time limit” means—

(a)

for a service leaver who ceased to be a member of the armed forces before 1st April F42016, the tenth anniversary of their ceasing to be a member of the armed forces;

F5(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

subject to sub-paragraph (d), for a service leaver who ceases to be a member of the armed forces on or after 1st April 2016, the fifth anniversary of their ceasing to be a member of the armed forces; and

(d)

for a service leaver discharged on attributable medical grounds on or after 1stApril 2011 who receives a disablement pension or a guaranteed income payment, the tenth anniversary of their ceasing to be a member of the armed forces.

F6(11)

Subject to paragraph (12), in this article “eligible service” means—

(a)

for a service leaver who has completed before 1st April 2016, or who completes before 1st April 2017, 4 years qualifying service, at least 4 years but less than 8 years qualifying service;

(b)

for a service leaver who has completed less than 4 years qualifying service before 1st April 2017, at least 6 years but less than 8 years qualifying service; and

(c)

for a service leaver who becomes a member of the ELC Scheme on or after 1st April 2016, at least 6 years but less than 8 years qualifying service.

(12)

Where a service leaver is discharged on attributable medical grounds “eligible service” means the completion of Phase 1 and Phase 2 training.

(13)

In this article the period of eligible service is to be calculated in accordance with article 6(8) to (10).

(14)

For the purposes of paragraph (9) any period during which the service leaver served outside the United Kingdom as a member of the armed forces is to be treated as a period of ordinary residence in the United Kingdom.

11Entitlement of eligible adult dependants under the FHEC Scheme in certain cases of death or attributable medical dischargeI1

F1(1)

Where a member of the armed forces dies on or after 17thJuly 2008 and such death is caused either wholly or predominantly by service, his or her eligible adult dependant is eligible for payment under the FHEC Scheme if conditions A to G are met.

(2)

Where a member of the armed forces is discharged on attributable medical grounds on or after 17th July 2008, his or her eligible adult dependant is eligible for payment under the FHEC Scheme if—

(a)

the member is unable, due to the injury or illness which caused the attributable medical discharge, to undertake qualification level learning;

(b)

if the discharge occurred on or after 1stApril 2017 the member receives a disablement pension or a guaranteed income payment; and

(c)

conditions A to G are met.

(4)

Condition A is that the member of the armed forces was, at the date of death or attributable medical discharge as the case may be, a member of the ELC Scheme.

F2(5)

Condition B is that the member of the armed forces has or had completed Phase 1 and Phase 2 training before the date of death or attributable medical discharge.

(6)

Condition C is that the eligible adult dependant is not applying for, or in receipt of, any other payment from public funds for tuition fees for qualification level learning unless such payment is made under the ELC Scheme.

(7)

Condition D is that the eligible adult dependant is applying for the payment of tuition fees in order to undertake no less than half of a full-time course leading to a qualification which falls within the definition of qualification level learning.

(8)

Condition E is that the eligible adult dependant satisfies the eligibility requirements concerning assistance by way of allowances or support for tuition fees in the part of F3the United Kingdom where they are ordinarily resident.

(9)

Condition F is that the eligible adult dependant remains resident in the United Kingdom for the period of the qualification level learning.

(10)

Condition G is that the eligible adult dependant’s course of qualification level learning commences before the tenth anniversary of the death or attributable medical discharge of the member of the armed forces.

(11)

For the purposes of paragraph (8), any period during which the eligible adult dependant accompanied the service leaver on their service in the armed forces outside the United Kingdom is to be treated as a period of ordinary residence in the United Kingdom.

12Payments under the FHEC SchemeI1

(1)

A payment under the FHEC Scheme must be made to an approved learning provider.

(2)

A payment under the FHEC Scheme must be for the total amount of the tuition fees charged in respect of an academic year to the applicant by the approved learning provider for the course of qualification level learning for which the applicant has enrolled, provided that such payment shall not exceed the total amount of the capped fees as defined in paragraphs (3) to F1(6).

(3)

Where an approved learning provider is located in England, “capped fees” means the maximum tuition fees which that establishment may lawfully charge persons who fall within Schedule 1 to the Education (Fees and Awards) (England) Regulations 2007f1 provided that—

(a)

where that approved learning provider is a publicly funded educational establishment, those fees do not exceed the higher amount as defined in F2paragraph 2(5) of Schedule 2 to the Higher Education and Research Act 2017 f2 and as prescribed in regulations made for the purposes of that F3paragraph f3; or

F4(b)

where that approved learning provider is not a publicly funded educational establishment, those fees do not exceed £6,000.

F5(4)

Where an approved learning provider is located in Wales, “capped fees” means—

(a)

where the applicant is a qualifying person undertaking a qualifying course provided by an approved learning provider in relation to which there is an approved plan, the applicable fee limit; or

(b)

in all other cases, £6,000.

(4A)

In paragraph (4), “applicable fee limit”, “approved plan”, “qualifying person” and “qualifying course” have the meanings given in section 57(1) of the Higher Education (Wales) Act 2015 (interpretation).

(5)

Where an approved learning provider is located in Scotland, “capped fees” means the tuition fees which that establishment may lawfully charge students with a relevant connection with Scotland within the meaning of regulation 3 of the Education (Fees) (Scotland) Regulations 2011f4, provided that those fees do not exceed F6£6,000.

F7(6)

Where an approved learning provider is located in Northern Ireland, “capped fees” means the higher amount which that establishment may lawfully charge a person under the Student Fees (Amounts) Regulations (Northern Ireland) 2005 provided that—

(a)

the course is a “qualifying course” within the meaning of regulation 4 of the Student Fees (Qualifying Courses and Persons) Regulations (Northern Ireland) 2007 (“the 2007 regulations”), and

(b)

the person is a “qualifying person” within the meaning of regulation 5 of the 2007 regulations.

Signature

Andrew Robathan

Parliamentary Under Secretary of State

Ministry of Defence

9th July 2012

Explanatory note

(This note is not part of the Order)

Part 2 of this Order establishes the Enhanced Learning Credit Scheme (“ELC Scheme”) and the Further and Higher Educational Commitment Scheme (“FHEC Scheme”) for former members of the armed forces (“service leavers”).

Part 3 of the Order makes provision for the ELC Scheme. The ELC Scheme gives financial help to service leavers who qualify under the Scheme rules with up to three payments towards the cost of achieving a nationally recognised qualification at Level 3 or above as defined by the Qualifications and Credits Framework (or equivalent qualifications). Article 5 of this Order specifies when a person may register as a member of the ELC Scheme. Article 6 sets out the conditions which a service leaver must meet in order to be eligible for payments under the ELC Scheme (including a requirement that certain periods of service must have been completed in order to qualify for payments at either the lower or higher tier). Where a member of the armed forces is discharged due to an injury caused wholly or predominantly by service, or predominantly worsened by service, then article 7 provides that they may qualify for a lower tier payment under the ELC Scheme even if the usual required periods of service have not been completed.

In some circumstances the benefits under the ELC Scheme may be transferred to a spouse, civil partner or other eligible adult dependant (or, where the member of the armed forces has died, to a surviving spouse, surviving civil partner or surviving eligible partner) and the transfer provisions are set out in article 8.

Part 4 of the Order makes provision for the FHEC scheme. The FHEC Scheme pays the tuition fees of service leavers who are resident in England, Scotland or Wales when they are studying for a first full Level 3 qualification or a first higher education qualification. A service leaver who has any remaining entitlement to a payment under the ELC Scheme must use that entitlement and, provided that the service leaver meets the relevant conditions for public funding of tuition fees in England, Scotland or Wales, the ELC payment will be increased to the full amount of the actual fees charged to the applicant (subject to maximum “capped fees”). Where the service leaver has no remaining entitlement to any ELC payment then the full amount of the actual fees (again subject to maximum “capped fees”) will be met. Article 10 deals with the conditions of entitlement under the FHEC Scheme. In some circumstances benefits under the FHEC Scheme may be transferred to a spouse, civil partner or eligible partner (or to a surviving spouse, surviving civil partner or surviving eligible partner as the case may be) and the transfer provisions are contained in article 11. Payments under the FHEC Scheme are dealt with in article 12.

Following the coming into force of this Order, ELC and FHEC payments to service leavers will be exempt from the tax charge that would otherwise arise by virtue of the application of Chapter 3 of Part 6 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) (Payments and Benefits on Termination of Employment Etc). This Order will fall under the exception provided for in section 411(2) of the same Chapter in that Act.

ELC and FHEC payments to service leavers are exempt from the separate tax charge that would otherwise arise by virtue of the application of Chapter 2 of Part 6 of ITEPA (Employer-Financed Retirement Benefits) as, by virtue of the amendments made by the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) (Amendment) Regulations 2011 to the Employer Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007, they are excluded benefits for the purposes of section 393B(3) in Chapter 2 of ITEPA.