SO v Secretary of State for Work & Pensions
[2024] UKUT 305 (AAC)
Secretary of State for Work and Pensions v AD (UC)
20 October 2023
[2023] UKUT 272 (AAC)
Upper Tribunal
A student used part of her student loan to pay tuition fees. A lower court said this part shouldn't count as income for Universal Credit. The higher court disagreed, saying the rules clearly state the whole loan amount counts, even if some is used for fees.
Key Facts
- •Ms. D, a student, appealed two decisions by the Secretary of State for Work and Pensions regarding her Universal Credit (UC): an entitlement decision and a subsequent overpayment decision (£764.30).
- •Ms. D received a £12,645 student loan from Student Finance England (SFE), a maintenance loan, but used £9250 to pay tuition fees.
- •The Secretary of State calculated student income based on the full loan amount, impacting UC entitlement.
- •The First-tier Tribunal (F-tT) allowed both appeals, arguing the loan should be assessed based on its actual use, excluding the tuition fee portion.
Legal Principles
Student income for UC is based on the amount of the student loan.
Universal Credit Regulations 2013, Regulation 68(2)
The definition of 'student loan' is determined by regulations under section 22 of the Teaching and Higher Education Act 1998.
Universal Credit Regulations 2013, Regulation 68(7)
Regulation 70 concerning grants only applies when Regulation 68(2) (covering student loans) does not apply.
Universal Credit Regulations 2013, Regulation 70
Outcomes
The Upper Tribunal allowed the Secretary of State's appeal.
The F-tT erred in law by relying on Regulation 70 (applicable to grants, not loans) and not applying Regulation 68(2), which mandates considering the full loan amount for UC calculations.
The F-tT's decisions allowing both appeals were set aside.
The Secretary of State's original decisions on entitlement and overpayment were reinstated as they correctly followed the statutory provisions.