Pension income and student maintenance loan

cecil720

My daughter will soon be starting university, but living at home, and will be applying for a maintenance loan.  I am retired so does my pension count as “income” when I’m filling out the parental information bit? Also, last financial year I was working, so as current circumstances are much lower on income, how quickly will they take that into account when assessing how much loan she will get? Thanks in advance for help and guidance. 

ewaste

Yes it's treated as income hence why it is also subject to income tax.

"‘Household income’ means the income your parents or partner receive, plus your own. Income is both money earned and unearned, so any benefits, pension payment or investment pay-outs will be taken into consideration."

Although UCAS notes that a students own income doesn't come into it and includes the following.

"You’ll be asked for financial details for the last full tax year prior to the start of the academic year. For example, if the student is applying for the 2021/22 academic year, the tax year will be 2019/20. Student Finance England will ask for details of the previous tax year because this is the most recent full tax year at the time applications open."

However this would probably apply to your situation:-

"If your income in the current tax year is likely to be at least 15% lower than the previous tax year, Student Finance England can assess your household income on what you estimate your income will be."

SouthCoastBoy

If you have savings (e.g. ISAs) and live off those as opposed to taxable income is it treated as "income" then?

cloud_dog

I know you said you are drawing your pension, but just in case, I am led to believe (hoping) that any pension contributions are also deducted from your income figure (although I have yet to verify this, but am hopeful).

lucyandthomas

cloud_dog said:

I know you said you are drawing your pension, but just in case, I am led to believe (hoping) that any pension contributions are also deducted from your income figure (although I have yet to verify this, but am hopeful).

I’ve been trying to find ‘black and white’ clarification on this too.