Question of the Week: Is a student grant affected if the student has ISA savings?

Former_MSE_Lee

Q. Does a Student grant get affected if that student has got savings in a cash ISA? Will the Grant be dependable on how much saving he or she has got? Kalpna, by email.

Martin's A. If you’re applying for a Maintenance Grant to help with accommodation and other living costs while on a full time uni course in England, as well as your parents’ income, you need to report the following:

Any money you receive from benefits (eg JSA), other grants/scholarships/bursaries you’re getting from other sources (including an employer) and interest earned on any savings or bank account. Therefore if you’ve £1,000 in a savings account paying 3% interest you only need to report the £30 interest gain.




[threadbanner] box [/threadbanner]

ThinkingOfLinking

Thanks for that clarification. I had been wondering.

Indie_Kid

I got told it was only taxable interest?

MrsManda

MSE_Lee wrote: »

Q. Does a Student grant get affected if that student has got savings in a cash ISA? Will the Grant be dependable on how much saving he or she has got? Kalpna, by email.

Martin's A. interest earned on any savings or bank account. Therefore if you’ve £1,000 in an ISA paying 3% interest you only need to report the £30 interest gain.

This is wrong. According to the guidance notes for student finance found on the direct.gov website HERE it is only TAXABLE unearned income which needs to be declared.

When working out your taxable unearned income, you should not include:
• earnings from full or part-time work such as holiday work or work you do
during term-time;
• any Maintenance Loan or grant payments you may receive;
• payments you receive from your parents under a covenant;
• maintenance payments you expect to receive for your children. These
maintenance payments should be included as part of your children's
income in question 8d;
• Teacher Training Bursaries;
• Higher Education Bursary (for care leavers);
• bounties paid by the armed services to reservists or disablement or
invalidity pensions; or
• ISAs.

Taiko

Yes, this is completely wrong. ISA' s are not brought into the assessment.

Oldernotwiser

Let's see how quickly they get it corrected.

Former_MSE_Dan

thanks a lot folks, have amended that

MrsManda

MSE_Dan wrote: »

thanks a lot folks, have amended that

The answer still says you have to declare the £30 gain from savings accounts, yet the question specifically asks about ISA income and as this is not taxable you do not have to declare it.

Lokolo

I do hope that wasn't Martin who actually answered that question.

It should be

Any money you receive from benefits (eg JSA), other grants/scholarships/bursaries you’re getting from other sources (including an employer) and taxable interest earned on any savings or bank account. Therefore if you’ve £1,000 in an ISA, at 3%, you will get £30 interest. But as it is ISA interest, it is not taxable income and therefore doesn't need to be declared. However, any interest earned outside of an ISA does need to be.