Secretary of State for Work and Pensions v AD (UC)
[2023] UKUT 272 (AAC)
SO v Secretary of State for Work & Pensions
10 September 2024
[2024] UKUT 305 (AAC)
Upper Tribunal
A Welsh student got a smaller student loan because of a grant. The government counted the grant as income when calculating her Universal Credit. The court agreed that the government's calculation was correct, even though the explanation was confusing. The key was that the rules say to imagine the student got the full loan amount, regardless of the grant reduction.
Key Facts
- •Appeal against First-tier Tribunal (Social Entitlement Chamber) decision regarding Universal Credit income assessment for a Welsh student.
- •Appellant received a reduced student loan due to a Welsh Government Learning Grant (WGLG).
- •Dispute centered on whether the reduced loan amount or the unreduced loan amount should be used in the Universal Credit calculation.
- •The DWP included the WGLG as unearned income, increasing the deemed student loan amount.
- •The First-tier Tribunal dismissed the appeal, upholding the DWP's calculation.
- •The appeal focused on the interpretation of the Universal Credit Regulations 2013 and the Education (Student Support) (Wales) Regulations 2018.
Legal Principles
Universal Credit legislation is the same for England and Wales, but financial assistance arrangements for students differ.
Universal Credit Regulations 2013 and Education (Student Support) (Wales) Regulations 2018
Regulation 68(2) of the 2013 Regulations states that if a student has a student loan, their student income is based on the loan amount, and any grant is disregarded except for amounts specified in regulation 68(3).
Universal Credit Regulations 2013
Regulation 69(1) of the 2013 Regulations states that the amount to be taken into account is the maximum student loan a person could acquire by taking reasonable steps, assuming no grant reduction (except for specified grants).
Universal Credit Regulations 2013
Regulation 69(2) of the 2013 Regulations states that in determining the maximum student loan, it is to be assumed that no reduction has been made on account of any grant made to the person, except certain types of grants.
Universal Credit Regulations 2013
The Education (Student Support) (Wales) Regulations 2018 govern student finance in Wales, detailing maintenance loans and grants, including the calculation of maintenance loans where special support payments are received.
Education (Student Support) (Wales) Regulations 2018
Outcomes
Appeal dismissed.
The Upper Tribunal Judge found that the First-tier Tribunal arrived at the correct result, even if its reasoning was unclear and contained errors of law. The Judge determined that the WGLG was correctly included in the student's unearned income for Universal Credit purposes based on the interpretation of Regulations 68(2), 69(1), and 69(2).