The back to education allowance is an educational opportunities scheme for unemployed people who wish to pursue approved second or third level courses of education. Participants receive a standard weekly rate of payment equivalent to the maximum rate of unemployment benefit. The scheme also provides for the retention of secondary benefits such as rent or mortgage supplements under the supplementary welfare allowance scheme.
The vast majority of participants are students who were in receipt of the maximum rate of an unemployment payment immediately prior to qualifying for a back to education allowance. These students continue to receive their rent/mortgage supplement at the same level as previously.
The issue raised by the Deputy concerns a participant who was in receipt of a reduced rate of unemployment assistance because he was assessed with means from another source. When he qualified for a back to education allowance, he was entitled to a higher basic weekly payment, equivalent to the maximum rate of unemployment benefit. When taken together with his other means, his income exceeded the threshold for payment of mortgage interest relief and the supplement had to be discontinued.
However, allowing for the increase in his basic payment, he received a net increase of £12.70 in weekly income.