See if this works any better:
$Source = '\\FS1\D$\Component 3 Skills log template.docx'
$Destination = '\\FS1\Homes\taw100students'
$sb = 'OU=Drama,OU=ComputerBasedExams,OU=TAW100STUDENTS,OU=TAW100,DC=something,DC=co,DC=uk'
Get-ADUser -Filter * -SearchBase $sb |
ForEach-Object{
$dest = "{0}\{1}" -f $Destination, $_.Name
Copy-Item $Source -Destination $dest
}