Housing Benefit and postgraduate Grants

I have a client who has been awarded a scholarship in the form of a grant for a postgraduate course (not eligible for a postgraduate loan). It will be paid as a lump sum straight to his account.
I have seen how to calculate income from a grant (reg 59), and also that a student loan is disregarded as capital (sched 6 para 22), but nothing about disregarding a grant as capital.
Is it disregarded? If yes, what is the legal basis for this?

I have seen this thread. Is that applicable here?

Thanks.

I would have thought so. It cannot be capital until it has stopped being income. I think the reason why Sched 6 makes specific provision for loans is that the natural treatment of a loan would be as capital and it requires Reg 64(1) to force it to be treated unnaturally as income.  In the case of a grant, income is the natural treatment to begin with so it does not require any “for the avoidance of doubt” paragraph in Schedule 6.

Thank you. Would you say that also extends to specific amounts disregarded from the grant, say an amount earmarked for childcare costs or for tuition costs?

I would: it is still income even if it is disregarded income.  The same principle would apply to more frequent payments of disregarded income - for example, DLA would only become capitalized if it is retained beyond the four week payment cycle.  I think the overarching principle is that a person should have a reasonable opportunity to use income for its intended purpose before it starts to be treated as capital, irrespective of whether it is disregarded in the means test.

Yes, makes sense. Thanks.