Regulation 16 Regulation 46A and 46B

After regulation 46 (treatment of student loans), insert —

“Treatment of payments from access funds

46A

(1)

This regulation applies to payments from access funds that are not payments to which regulation 46B(2) and (3) apply.

(2)

A payment from access funds, other than a payment to which paragraph (3) of this regulation applies, shall be disregarded as income.

(3)

Subject to paragraph (4) of this regulation and paragraph 31 of Schedule 3, any payments from access funds which are intended and used for food, household fuel or rent or ordinary clothing or footwear (“rent” and “ordinary clothing or footwear” have the same meaning as in paragraph 12(2) of Schedule 3), of a single relevant person or any other member of his family, and any payments from access funds which are used for any council tax or water charges for which that relevant person or member is liable, shall be disregarded as income to the extent of £20 per week.

(4)

Where a payment from access funds is made —

(a)

on or after 1st September or the first day of the course, whichever first occurs, but before receipt of any student loan in respect of the academic year beginning on 1st September and that payment is intended for the purpose of bridging the period until receipt of the student loan; or

(b)

before the first day of the course to a person in anticipation of that person becoming a student, that payment shall be disregarded as income.

Income treated as capital

46B

(1)

Any amount by way of a refund of tax deducted from a student’s covenant income shall be treated as capital.

(2)

An amount paid from access funds as a single lump sum shall be treated as capital.

(3)

An amount paid from access funds as a single lump sum which is intended and used for an item other than food, household fuel or rent or ordinary clothing or footwear (“rent” and “ordinary clothing or footwear” have the same meaning as in paragraph 12(2) of Schedule 3), of a single relevant person or, as the case may be, of the relevant person or any other member of his family, or which is used for any council tax or water charges for which that relevant person or member is liable, shall be disregarded as capital but only for a period of 52 weeks from the date of payment.”.