Dear SamWe have only received notification of the amendments to the regulations from the DWP yesterday morning, so here are my revised responses to the questions. As requested I have placed the answers following each question. 1. If the loan were to be £5,000 in year one of the masters programme and the cost of themasters is £5,000 in year 1 and £5,000 in year 2 of the masters, how much isconsidered earnings in each year? What percentage of which figure is used asearnings? The loan is treated as income, not earnings, therefore nothing would be disregarded from ”earnings”. 1. If the loan were to be £5,000 in one year of the masters programme, with a further £5,000 for the year 2, the income from the loans would be 30% of the loan,£1,500. This would be apportioned in the same way previously explained, for the period relating to the period of study. So a course commencing inSeptember 2016, and with a holiday term in the summer term, a weekly incomefrom the £1,500 would be calculated using the number of weeks from the firstfull benefit week in September to the last Sunday in July 2017. In this case that would be September 2016 to 25th June 2017 which is 42 weeks. Fromthe £1,500 we would deduct £303.00 for travel costs and £390.00 for books and equipment. This would leave £807.00 to apportion over the 42 week period at £19.21 per week. This amount would be further reduced by the £10.00 weekly disregard, to £9.21 per week. 2. Is the part of the loan considered earnings (30%) apportioned from start to end of thepostgraduate course throughout the academic year but income calculated April2016 to 31 March 2017 for housing benefit purposes. 2. The loan would not be treated as earnings, but as income. This would be applied for the period of study, so if the course commenced on 14th September 2016, we would apply this income from the following Monday, 19th September 2016 up until Monday 26th June2017. The income for the second year would be applied from the first Monday in September 2017, and would then be removed from the Monday following the completion of the course. 3. Are the disregards of £10 per week plus £632 per annum for each year of thecourse? So is a total of £22pw disregarded from earnings each year? [Regulation 64(5)and regulation 64(2). 3. The £10 disregard will be applied for the period of study, not for the whole year. Therefore if the period of study was calculated as a 42 week period the £10 disregard would be applied for those 42 weeks only. The disregard for Books and Travel, totalling £693 would be applied for each year of study. 4. For example using weekly earnings at the maximum permitted threshold (£73.10) before deductions from housing benefit are made and a simple case for a single person above 30years old with no assets or other income other than the £73.10 per week andpaying rent at or below the permitted LHA rate and in receipt of housingbenefit, what are the weekly earnings in such an example? (basic uncomplicatedcase to illustrate) 4. As in your example, if someone had earnings of £73.10 per week, equal to their Personal Allowance, the additional income from the loan would come to £9.21 per week (asdetailed above). The Housing Benefit award would be reduced by 65% of any income above the Personal Allowance (termed Excess Income). So an ExcessIncome of £9.21 per week would reduce the Housing Benefit award by £5.99. 5. Is the correct figure for total earnings using the below and above examples equal to £73.10pw plus £29pw (30% of £5,000 = £1,500pa or £29pw) less the disregards of £22pw? 5. This is not correct. The income from the loan wouldbe £9.21 per week (30% of £5,000 - £693 ÷ 42 weeks =£19.21. Minus £10 disregard). Is the income calculated 1 April 2016 to 31 March 2017 eventhough it is apportioned, using the size of the loan less the £10pw disregardedless the £632pa disregarded, weekly from 1 October 16 to 31 July 2017? The income is not calculated from 1 April 2016 to 31 March2017 or 52 weeks. It is calculated basedon the period of study. Regards Revenues and Benefits City Treasurers