keep The Tax Credits Schemes Amendment (Education Maintenance Allowance) Regulations 2000
These regulations amend the Family Credit (General) Regulations 1987 and Disability Working Allowance (General) Regulations 1991 to specify that education maintenance allowances (EMAs) payable under section 518 of the Education Act 1996 shall be disregarded when calculating income and capital for tax credit eligibility purposes. EMAs are grants to help students with school expenses; the regulation ensures they are not counted as income which would reduce benefit entitlements.
Without this regulation, education maintenance allowances would be counted as income, reducing tax credit benefits pound-for-pound — effectively confiscating EMA payments through the benefit system and creating marginal tax rates over 100% on educational assistance. This would destroy the purpose of EMAs, which is to help students afford education. While tax credits themselves are government intervention, this regulation prevents a particularly harmful interaction where two government programs would undermine each other and penalize educational attainment. Deleting it would make recipients worse off by clawing back their education grants through reduced benefits.