Commentary on Sections Education and training Section 21: Entitlement to payment in respect of higher education
96.This section adds to the duties that local authorities owe to “former relevant children” by amending section 23C of the 1989 Act to require local authorities (in addition to providing assistance under section 23C(4)) to pay a fixed sum to those who go on to pursue a course of higher education. The section includes provision to prescribe by regulations the meaning of “higher education”. The first exercise of this power will be subject to the affirmative resolution procedure (paragraph 25 of Schedule 3 to the Act and see paragraph 18 for a description of the affirmative resolution procedure). The intention is to use the power to align the definition of higher education for these purposes with the definition used in the Education (Student Support) (No 2) Regulations 2008 (“the 2008 Regulations”) so that the eligibility criteria for the payment (in terms of the courses attended) will be similar to those for student loans, as set out in regulation 6 of, and Schedule 2 to, the 2008 Regulations.
97.The amount of the payment will be set in regulations to be made by the appropriate national authority under section 23C(5B) which is inserted by subsection (2). The regulations will also deal with the eligibility criteria; the arrangements for making the payment (e.g. whether to be paid by instalments and if so the interval between payments); and the circumstances in which instalments may cease or payments must be repaid (e.g. if the young person ceases to attend a course). The duty to make the payment subsists while the young person follows a pathway plan, whether one made under section 23B or one made subsequently under section 23CA. The payment should not affect the young person’s entitlement to other assistance with his educational or training needs under section 23C(4). In addition the payment will be exempt from income tax by virtue of an amendment to the Income Tax (Trading and Other Income) Act 2005.
98.“Former relevant children” are defined in section 23C(1) of the 1989 Act and include those who are over 18 and who were either relevant children (within the meaning of section 23A) or eligible children (within the meaning of paragraph 19B of Schedule 2 to the 1989 Act and regulations made under sub-paragraph (3) of that provision) immediately before their 18th birthday .