Calculation of non dependant’s income

My client is a single lady receiving HB based on her PT wages.  She has a 22 year old non dependant son living with her.  The son is on UC however for 8 weeks he had an internship for which he had a bursary, paid half by the bank he worked for and half paid by our local university (he is not a student there now, but has been in the past). His UC continued throughout the internship.  In calculating the NDD the council have added together his internship (a weekly equivalent of it) and his UC payment.  I cannot find anything to confirm this is correct as reg 74 HB regs just says gross income - so I suspect the council may be correct.  Can anyone point me anywhere helpful please?  Thanks

Has this “bursary” been accounted for as earned income or unearned income for UC?

UC have completely ignored it and continued to pay his full standard allowance

Assuming that is the correct treatment by UC, there shouldn’t be any NDD (Reg 74(8)(b)).