Salary is a Tax-Free Bursary?

I am hoping someone might be able to help me with this.  I am applying for a couple of 1-year internships that are paid through special funding.  They do not really have a specific employer as such, as there are multiple bodies that are involved in them.

The pay is as follows: "You will receive a bursary of XXXXX paid directly to you by XXXXX in advance in quarterly instalments. Because it is a bursary, you will not be required to pay tax on this."

Now, let's not assume I even get the job (I have learned to keep low expectations at this point  ), but for the sake of curiosity, how does one deal with this come tax-time for the UK?  Would one have to file something anyway, for any reason or would it already be taken care of in some way?

Would not paying tax on a salary here affect filing taxes in the US?  Just trying to get my head around this! 

My wife has one of these. You don't have to file anything in the UK.

You do have to report it on your US tax return as earned income, but you can use the foreign earned income exclusion to eliminate tax liability (up to the exclusion limit, of course).

Fantastic! Thanks so much!