Changes to income assessment - Questions and Answers

What are the main changes for income assessment in academic session 2008/09?

The main changes are:

• Partner income (for student or students’ parent) will now be taken into account;
• Students under 25 with children, will now be classed as ‘exempt from parents’ contribution’, and will be entitled to the Young Students’ Bursary package;
• Some benefits will now be included, along with Working Tax Credit;
• Maintenance payments into the household will be included;
• Retirement Annuity Premiums and Superannuation will no longer be deducted from gross partner/parent income;
• The disregarded income for students’ unearned income;
• Sponsorship and Scholarships will no longer be included as student income;
• Students who have a partner, but are not married or living in a civil partnership, can now claim Dependants’ Grant for their partner, depending on level of income.

 

Who do the changes affect?

The changes will apply to all undergraduate and postgraduate students, including those who are currently in full-time higher education.  They will be applied from academic session 2008/09, and there is no consideration being given to apply them retrospectively.

The changes will also apply to Nursing and Midwifery Bursary students, in relation to Dependants’ Allowance.

What do I need to do?

All students (and their partner’s/parents) will be expected to provide SAAS with the additional income information on their 2008/09 application form.  Copies of documents, relating to any new income, will also be required.  If these cannot be provided at time of application, they can be sent later, but you should be aware that we can only provisionally assess your application until these documents are received.

The application forms should be available in early April, through our on-line service.  If you can’t or don’t want to use our on-line service, you can submit a paper application.

Why are you making these changes?

The means test arrangements have not been revised since their introduction in the 1960s and it’s widely acknowledged that they do not reflect modern family life.
This review has been long overdue and this new Scottish Government has acted to make it simpler. We’re also taking this opportunity to increase access to the Young Students’ Bursary and extend eligibility for the Dependant’s Grant.

What proof do I need to send in to show I have a partner?

You do not have to send in evidence that you have a ‘partner’ with the initial application.  However, we may ask for evidence at a later date.

The following evidence is acceptable:

• Bank statement (or other household bill) showing joint names;
• Council tax statement;
• Mortgage or tenancy agreement.
• Tax Credit statement

If you cannot provide any of this evidence, we may still be able to assess your student support on the basis of your partner’s income.

What proof do I need to send in if I separate from my partner?

If you are no longer with your partner then you then the following evidence is acceptable as proof:

• Tax Credit statement
• Council tax statement
• Job Centre Plus documentation
• A letter from a professional person, e.g. lawyer, doctor, policeman, policewoman, minister of religion, etc.

 

What is your definition of ‘partner’?

A partner is a person you are married to or a person you live with as if you are married to them.  From 5 December 2005, when the Civil Partnership Act 2004 came into force, the term partner also refers to: a person you live with in a civil partnership or a person you live with as if you are in a civil partnership.

Can I declare my girlfriend/boyfriend as a ‘partner’ because we live together in term-time lodgings?

No. If either of you have a separate address where you normally live then we cannot consider you as partners.

What if I did not receive Young Students’ Bursary (YSB) in 2007/08 because my parents’ income was too high and I have a child under 3 years old?

You will be eligible to apply for YSB from 2008/09 as a lone parent or on the basis of your partners’ income if you were living together before 1 August 2008.

Will my tax credits be included in as household income?

Child tax credits are excluded but we will include Working Tax Credits (though not the Childcare element, if you receive this).

I receive £4000 a year as maintenance from my ex-partner in respect of my two children.  One of them is a student. How will you assess this income?

We will only take account of the actual maintenance for the student child as your income.  If the maintenance is paid direct to the student then we will treat it as their unearned income.

I pay out £4000 a year in maintenance to my ex-partner in respect of our two children who do not normally live with me.  How will you assess this income?

The actual amount you pay out as maintenance in respect of a child who is a student will be deducted from your total income.

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