LGPS , AVCs and student finance

Nual

I would really appreciate any advice on whether the following is doable/ sensible.
I have been in LGPS since 1992, am projected a pension of 15,000 at 61, and have a linked Prudential AVC account with v. little in it.
I am trying to save enough to retire at aged 61, 4 years time.
DD1 completed first degree in 2011 and is waiting to hear if she has been successful in getting a place on a PGCE in 2013/14
DD2 has 3 1/2 years to go on a degree in medicine.
I am a basic rate taxpayer, single parent , and have 30k in savings ( inheritance when mum died last year) plus a couple of ISAs.
The AVC allows 1/2 earnings before tax to be paid in each year and taken as a tax free lump sum on retirement, up to a max of ( in my case) 71,000. I will get a lump sum of 36,000 anyway, so total I can pay in is 35,000
I plan to pay this 1/2 earnings starting in April 2013 for 1 year, and use inheritance for living costs. I will then apply for a current year assessment for student finance, as my income will have fallen by more than 15% compared to the year they would normally look at, which is 2011/12.
DD2 ( and possibly 1) will then get an extra 1800 in student loan, grant and bursary, with more grant compared to loan than they would have done, thereby reducing the amount I have to shell out for their accommodation and the amount they will have to pay back. I will get 20% tax paid into the AVC.
Downside is I don't have access to the money before retirement, and I currently have the money in an AVC deposit fund which only pays BoE rate ( 0.5%) and will not keep pace with inflation.
Am I being too clever (and complicated) by half?

taktikback

One point you may need to look at (and I'm not sure about this..) but I'm thinking you will be assessed on your full earnings rather than the proportion of those earnings you've chosen to take after contributing to a pension...

Now if this was a "salary sacrifice" arrangement - it may well be different...but LGPS isn't salary sacrifice...

Nual

taktikbak, thanks for responding. I have checked the regs, and
student finance is calculated on taxable income. They want details of full income, but only used taxable income, ie after pension contributions. They dont count returns on ISAs either, as this is non taxable income.