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Uni grants. & loans

  • anty
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11 Nov 09 #161386 by anty
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I was divorced 5yrs ago. All 3 children went with mum. 2mths later elderest child came back ,1yr later 2nd & 6mths ago last one came home to me .
Eldest went to uni. My earnings including £900 p.mth spousal maintenance preclude most grant & reduce maitenance. The £900 is deemed to be my disposable income[ bacause I pay the tax on it] & so levels of help v. reduced.

My income is mostly from a pension . It coild not be split because the pension rules mean she would only get it when she reached 65yrs[ my statutory pension age] So spousal maitenance was substituted.
Actual effect is [£3200pa ] reduced to £350pa. Maitenance [£6550pa] reduced to £ 6300pa A total loss of £6000 over 3yrs.
Taken up to S of S twice & spoken to a very senior tax officer who said --- using the tax rules to calculate uni grants & loans meant that an unexspected outcome occurrs when CHILDREN LIVED WITH FATHER.
Has any one come across this Is ther any way round . Is this issue one to raise with the S OF State in the review of grat arrangments ???

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11 Nov 09 #161408 by Fiona
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Perhaps I'm missing something but I'm not entirely sure I understand the question or figures. However, our children's student loans were assessed against my income and I paid SM. The loan was assessed against my taxable income before any deduction for SM. Is that what you mean?

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12 Nov 09 #161502 by anty
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Sorry if I put it badly. Kids live with me & my taxable income was used to calculate student loan & grant .
My taxable income includes the £900 pm I pay to ex as spousal maintenance.
If SM was deducted as its not disposable income[ ie covered by a court order] my real income would be a lot less & the kids would get full grant. I have twins due to go next year so for them it would be allmost £6000pa. for me a huge sum to find .
Im not complaining about paying SM just that it counts as dispossable income . SM is paid out of pension & if there had been a pension split the £900 pm would NOT be dispossable income. Then my annual income would be £900 x 12 = £10000 less & full educational grant & maintenance would apply .
Thanks for reply Have I made the questions clear.

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