[2024] UKUT 305 (AAC)

Much of the following description of Welsh student finance legislation, as at the date of the Secretary of State’s determination of the Appellant’s claim for Universal Credit, is drawn from the skeleton argument of Mr Howell, who appears for the Secretary of State. I am grateful to Mr Howell for his assistance.

Student finance in Wales is governed by regulations made by the Welsh Ministers, the Education (Student Support) (Wales) Regulations 2018 (2018 Regulations). The 2018 Regulations are made under section 22 of the Teaching and Higher Education Act 1998.

Part 7 of the 2018 Regulations (regulations 43 to 52) provides for the Welsh Ministers to make available, to an eligible student, a ‘base grant’ and a maintenance grant. The purpose of these grants is “the student’s living and study costs” (regulation 43). The amount of the base grant for each academic year for a full-time student is £1,000 (regulation 45). The amount of the maintenance grant (if any) is dependent on various factors including the student’s household income and their living arrangements (regulation 46). The maximum amount of maintenance grant for a full-time student living away from home and not studying in London is £7,100.

Where a full-time student qualifies for a base grant or maintenance grant, and meets a qualifying condition in regulation 51 of the 2018 Regulations, the base grant and so much of the maintenance grant for a full-time student as does not exceed £4,161, is to be treated as a ‘special support payment’ (regulation 50(1)). It is not disputed that the Appellant satisfied a qualifying condition in regulation 51. Regulation 50(2) provides that a special support payment is intended to meet (a) costs of books and equipment; (b) travel expenses; and (c) childcare costs, “in connection with an eligible student undertaking a designated course”. However, I have not been taken to any provision which provides for the payment to vary according to a student’s particular requirements. For instance, the special support payment for a student without dependent children (and hence without childcare costs) appears to be the same as for one with children.

The Appellant’s special support payment was £5,161. In other words, the maximum permitted amount of maintenance grant was treated as a special support payment (since the fixed amount of base grant (£1,000) must have made up the rest of the special support payment).

The 2018 Regulations make no mention of a ‘Welsh Government Learning Grant’. I am informed by Mr Howell, for the Secretary of State, that the Welsh Government Learning Grant is ‘a shorthand for the base and maintenance grant’. That does not make sense, at least in the case of this Appellant. The Appellant’s base grant was included as part of her special support payment, as was the majority of her maintenance grant, and she was informed that she would receive a separate amount in the form of a WGLG. As explained below, in legal reality this Appellant’s Welsh Government Learning Grant was simply a label for what remained of her maintenance grant after £4,161 of it had been treated as part of her special support payment.

Part 8 of the 2018 Regulations (regulations 53 to 60) deals with maintenance loans. Maintenance loans are made available “in respect of living costs for an academic year” (regulation 53).

Regulation 55(1) provides that, for a full-time student, the amount of maintenance loan payable is the maximum amount of maintenance loan available to the student minus the amount of maintenance grant payable to the student under regulation 46.

Regulation 55 is not made expressly subject to regulation 56. However, regulation 56(1) provides that, “where a full-time student qualifies for a special support payment under regulation 50, the amount of maintenance loan payable to the student is calculated in accordance with paragraph (2)”. I understand it is accepted that this Appellant’s maintenance loan entitlement was governed by regulation 56 rather than regulation 55.

Regulation 56(2) sets out a number of steps for the calculation of a student’s maintenance loan. For present purposes, I need only mention steps 5 and 6. Step 6 provides that the amount of maintenance loan payable is arrived at by deducting that part of any maintenance grant that is not treated as special support payment from the notional maximum amount of student loan calculated at step 5.

A parents’ learning grant, in respect of costs associated with certain dependants of the student, is provided for by regulations 73 and 74 of the 2018 Regulations. It appears that this grant has no effect on the amount of a student’s maximum student loan.