Paragraph 1 Calculation of student’s income

in a case not covered by paragraph (u), the first £880 of income of any description;

the first £4,150 of any payment by way of—

any grant to facilitate teacher training paid to the student under regulations made under section 50(1) of the Education (No. 2) Act 1986^f1 or any payment made in respect of the student’s training as a teacher by an institution to which grants, loans or other payments for that purpose are provided under section 5 of the Education Act 1994^f2 or under section 65(3) of the Further and Higher Education Act 1992^f3;

in the case of a student for whose benefit any income is applied or any payments are required to be applied as described in paragraph 5(5) the whole of that income or those payments if a parental contribution ascertained in accordance with Part II or a spouse’s contribution ascertained in accordance with Part III is applicable (at whatever amount, including nil, that contribution is ascertained to be);

any pension, allowance or other benefit paid by reason of a disability or incapacity to which the student is subject and any war widow’s or war widower’s pension;

any bounty received as a reservist with the armed forces;

remuneration for work done during any academic year of the student’s course;

in the case of a student in whose case a parental contribution is by virtue of Part II of this Schedule applicable (at whatever amount, including nil, that contribution is ascertained to be) any payment which is made under covenant by a parent by reference to whose income that contribution falls to be ascertained;

any payment made for a specific educational purpose otherwise than to meet such fees and such requirements for maintenance as are specified in Schedules 1 and 2;

child benefit payable under Part IX of the Social Security Contributions and Benefits Act 1992^f4;

any allowance payable to the student by an adoption agency in accordance with regulations made under section 57A of the Adoption Act 1976^f5;

any guardian’s allowance to which he is entitled under section 77 of the Social Security Contributions and Benefits Act 1992;

in the case of a student with whom a child in the care of a local authority is boarded out, any payment made to him in pursuance of section 23 of the Children Act 1989^f6;

any payments made to the student in pursuance of an order made under section 34 of the Children Act 1975^f7 or under section 15 of and Schedule 1 to the Children Act 1989 in respect of a person who is not his child, or any assistance given by a local authority pursuant to section 24 of that Act;

income support or working families' tax credit under Part VII of the Social Security Contributions and Benefits Act 1992;

any housing benefit or community charge benefits granted to the student in pursuance of a statutory or local scheme under Part VII of the Social Security Contributions and Benefits Act 1992 or any council tax benefit granted to him in pursuance of a statutory or local scheme under that Act;

in a case not covered by paragraph (u), the first £3,340 of any pension, allowance or other benefit payable by reason of the student’s old age, his retirement, the death of his spouse or parent or another person on whom he was wholly or mainly financially dependent, or by reason of his military or other public service;

any payments made to the student under the action scheme of the European Community for the mobility of university students known as ERASMUS^f8, the European Community programme for foreign language competence known as LINGUA^f9 or the European Community programme known as LEONARDO DA VINCI^f10;

any payments made to the student out of access bursary funds or hardship funds paid to the institution at which he attends his course under section 65 of the Further and Higher Education Act 1992^f11, or sections 73 and 74 of the Education (Scotland) Act 1980^f12 or out of access funds under article 30 of the Education and Libraries (Northern Ireland) Order 1993^f13 or article 5 of the Further Education (Northern Ireland) Order 1997^f14;

any payments made to the student for the maintenance of his child by virtue of any agreement, instrument or enactment;

where a parental contribution does not apply because the student falls within paragraph 3 of this Schedule and a spouse’s contribution does not apply under Part III of this Schedule, the first £7,500 of income of any description, other than any sum treated as income under sub-paragraph (6).

if, in the opinion of the authority, the obligation had been reasonably so incurred, an amount equal to the payment in question;

if, in their opinion, only a lesser obligation could have been reasonably so incurred, such correspondingly lesser amount (if any) as appears to them appropriate;

if the student purchases sterling with the income the amount of sterling the student receives for it, and

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 Statistics in “Financial Statistics”.