Income or capital (or both!) ?

Hi all
I have a client, full timedegree student degree and carer of wife who receives DLA. Due to I.S ending (correctly) he had to provide evidence of all income, savings, student loans/grants to the LA to enable a recalculation of HB/CTS.

The LA have calculated the relevant income for HB purposes however they have also applied large tariff income from savings, £4k of this ‘capital’ is his student loan.

I do not believe this is correct as the student loan is income for the academic year and so cannot be both income and capital generating a tariff income at the same time - fair enough if he has cash left after the period for which it is paid but we are bang smack in the middle of the school year.

Having gone back and forth in CPAG I am struggling to find the relevant reg/s, could someone give me the answer I am looking for?

Thanks in advance.

Reg 64(1).  A student loan is income.  The same money cannot be treated simultaneously as income and capital.

Schedule 6 - capital disregarded:

22. Any capital which by virtue of regulation 41 or 64 (capital treated as income and treatment of student loans) is to be treated as income.

Reg 64(1):

A student loan shall be treated as income.

Previous thread citing a bit of caselaw on the general principle of double-counting:
http://www.rightsnet.org.uk/forums/viewthread/1039/

You are all brilliant, I knew I knew it… just couldn’t find it.

Thanks,
Chaos