Independent Circumstances Allowance

For students who are under 24, without children, entitlement to a Student Allowance is normally subject to both their parents' income.

The Independent Circumstances Allowance is available for students who are not living in the parental home or receiving financial assistance from either parent, and there are exceptional circumstances that mean it would be unreasonable for them to:

• live with their parents and
• receive financial support from their parents

A decision to grant an Independent Circumstances Allowance involves the exercise of discretion to make an entitlement decision based on the purpose and intent of the regulation, the limitations of the wording of the regulation, and the facts of the particular situation.

This will require an assessment of the nature and extent of the relationship between any parents and the student. This will involve making a judgement on the relevant facts in relation to the purpose and intent of the policy. Each case needs to be considered on its merit.

Exceptional circumstances’ means circumstances that are far beyond what is ordinary. Normally, these circumstances will need to be beyond the student's control.

For example, if a student chooses to live and study in a different city/town from their parents, this would not meet the threshold of ‘exceptional circumstances’.

It is important to remember that while it is not uncommon for young people to have disagreements, arguments or ‘problems’ with their parents, to meet the threshold of ‘exceptional circumstances’, it must be far beyond what is ordinary and mean that it is both:

• unreasonable to expect the student to live with either parent and
• unreasonable for the student to receive financial assistance from either parent

An Independent Circumstances Allowance application can often involve a student describing a breakdown in family relationships, in particular with their parents.

For more information see:

An applicant must not be getting financial assistance from any parent (or any other person acting in place of a parent).

If an applicant receives financial assistance from any parent, the student is not eligible to get an Independent Circumstances Allowance.

An applicant must be independent from all parents. If the applicant is independent from only one parent, an Independent Circumstances Allowance cannot be approved.

For example, an applicant's parents may have separated and remarried. In many cases only one parent or one step-parent may be the cause for an application for an Independent Circumstances Allowance.

The applicant must be independent from all parents and any step-parents before the criteria for an Independent Circumstances Allowance can be met.

The following situations are not considered to be exceptional circumstances for the purposes of an Independent Circumstances Allowance:

• financial hardship of parents – where they consider they cannot afford to financially support the student
• the refusal of the parents to provide financial support for the student

If a student has received an Independent Circumstances Allowance in the study period immediately prior to their application for an allowance, they can effectively apply for their Independent Circumstances Allowance to be 'continued'.

This means, their personal situation does not have to be fully verified as long as the student declares and confirms that their circumstances have not changed.

However, if a student indicates that their circumstances have changed you will need to review their continued eligibility and make a new assessment.

Third parties, including a parent, do not have a right of review in relation to an application for an Independent Circumstances Allowance.

The application is the student's application.

In addition, MSD do not have the authority or right to disclose to a third party, including a parent, any matters relating to an application - unless the student has authorised it.

If a third party, including a parent, wishes to act on behalf of a student then they must become an agent for the student.

An agent's powers may be limited to a specific issue, for example to assist with a Review of Decision application.

If a third party applies to act on behalf of a student in relation to their Independent Circumstances Allowance application, MSD need to ensure they are not 'acting in place of a parent' for that student.