Understanding Universal Credit Eligibility As A Student

Universal Credit is a monthly payment to help people on low incomes or out of work with their living costs. While students are usually not eligible for Universal Credit, there are some exceptions. Students may be able to claim Universal Credit if they are in full-time education and meet one of the following criteria: they live with a partner who is eligible for Universal Credit; they are responsible for a child, either as a single person or as a couple; they have reached State Pension age and live with a partner who is below that age; or they have received a Migration Notice letter telling them to move to Universal Credit. Students with disabilities or health conditions may also be eligible for Universal Credit. In addition, students under 21 who are studying up to A-level or equivalent qualifications and do not have parental support may be able to claim Universal Credit.

Full-time students

As a full-time student, you can only claim Universal Credit if you meet one of the following criteria:

• You are under 21 and taking a course leading to a qualification at or below A-level (or equivalent), and you do not have parental support.
• You are responsible for a child.
• You receive Attendance Allowance, Pension Age Disability Payment (in Scotland), Disability Living Allowance, Personal Independence Payment, Adult Disability Payment, or Child Disability Payment, and you have limited capability for work.
• You live with a partner who can claim Universal Credit.
• You have taken time out from your course due to illness or caring responsibilities, and you are waiting to return to your course.

If you are a full-time student and meet one of these criteria, you will need to agree to a claimant commitment to be eligible for Universal Credit. If you are a student under 21 without parental support or a student receiving student income, you will not have to do anything under this claimant commitment. If you have taken time out from your course, you will need to speak to your work coach to determine your claimant commitment.

Your student income, including loans and grants, will impact the amount of Universal Credit you receive. Loans for tuition fees and other study costs are excluded, but maintenance loans for living costs and rent are considered income and will be taken into account when calculating your Universal Credit.

Non-advanced education

If you are a student in non-advanced education, you can usually not claim Universal Credit. However, there are some exceptions.

You may be able to claim Universal Credit if you are in non-advanced education and any of the following apply to you:

• You are 21 or younger and do not have parental support. Non-advanced education is any qualification up to A-Level or equivalent.
• You are in full-time non-advanced education or training that started before you reached 21, and you turn 21 while still studying.
• You are responsible for a child, either as a single person or as a couple.
• You live with your partner, and they are claiming Universal Credit.
• You are old enough to receive a state pension, and the partner you live with is under the state pension age.
• You have received a Migration Notice telling you to move to Universal Credit and were participating in a course of education before claiming Universal Credit.
• You are already in full-time education and have moved from Employment and Support Allowance to Universal Credit.
• You are disabled, have been assessed as having Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LCWRA), and receive:
• Disability Living Allowance or Personal Independence Payment
• Attendance Allowance
• Armed Forces Independence Payment
• If you are studying in full-time non-advanced education, you do not get a student loan or maintenance grant, and you are available for work. This only applies if the course is more than 12 hours a week and you are 19 or older, as your parents can claim benefits for you before that date.

If you are under 20 and in full-time non-advanced education, you will not usually get Universal Credit. If you are 16 to 17, you may be able to claim Universal Credit if any of the following apply:

• You have a health condition or disability and have medical evidence for it, such as a fit note.
• You are caring for someone who gets a health or disability-related benefit.
• You are responsible for a child.
• You live with your partner, have responsibility for a child, and your partner is eligible for Universal Credit.
• You are pregnant and expecting your baby in the next 11 weeks.
• You have had a baby in the last 15 weeks.
• You do not have parental support, for example, you do not live with your parents and are not under local authority care.

Student income

If you are a student with income from loans, grants, bursaries, scholarships, studentships, or exhibition allowances, this will usually count as income for Universal Credit. However, there are some exceptions.

Loans

The maximum student loan you are eligible for will be taken into account when working out your Universal Credit. This applies even if you have:

• Not applied for a loan
• Not accepted the loan
• Decided not to take the full amount
• Received a reduced loan because someone has contributed to your living costs, for example, your parent, guardian, or partner

Grants

Some grants will be disregarded and not taken into account for Universal Credit. These include grants for:

• Tuition or examination fees
• Expenses paid for a disability
• Extra costs due to term-time residential study away from your college or university
• Housing costs for a home other than where you live while attending your course (unless you are already getting the Housing Costs Element for this property)
• Living expenses for another person, but only if you're not getting Universal Credit for that person (including the Adult Dependant's Grant)
• Expenses for books and equipment (including the Parent's Learning Allowance)
• Travel expenses for attending the course
• Childcare costs (including the Childcare Grant)

Assessment Periods

Universal Credit is usually paid once a month and is based on your circumstances during that month. This is called your 'assessment period'.

During each assessment period, you will be deducted money from your Universal Credit payment for any student income you receive. The calculation is based on your student income for the month minus an amount for expenses.

However, no student income will be taken off your Universal Credit if:

• The assessment period covers the first day of the summer holidays
• You're on summer holiday for the entirety of an assessment period
• Your course ends during the assessment period

Student loans

In the UK, student loans and grants are primarily provided by the government through the Student Loans Company (SLC). The SLC is a non-profit, government-owned organisation that administers loans and grants to students in colleges and universities in the UK. It is responsible for Student Finance England and Student Finance Wales and is a delivery partner of Student Finance NI and the Student Awards Agency for Scotland.

Most undergraduate students resident in the UK are eligible for student loans, as are some students on teacher training courses. Postgraduate students who are studying a taught Masters, research, or Doctoral course are also eligible for student loans.

All full-time students are entitled to a loan covering the full tuition fee. Students are also entitled to a maintenance loan, which is designed to help pay for living costs while at university. The amount of the maintenance loan varies depending on whether the student lives at home, in London, or elsewhere in the UK. Students from low-income households may qualify for an increased maintenance loan and/or maintenance grant.

Repayment of student loans is made under an income-contingent repayment (ICR) scheme, where repayments are calculated as a percentage of annual gross income above a certain threshold. The interest rate for these loans is set each September and depends on the Bank of England base rate and the Retail Prices Index (RPI).

Students can manage their loan balance online, where they can view how much they have repaid, how much interest has been applied, set up and amend Direct Debits, and print proof of their repayment plan.

Eligibility

Universal Credit is a monthly payment to help with living costs for people under State Pension age who are on a low income or out of work. In some circumstances, you can claim if you are in full-time training or are a full-time student.

If you are a full-time student, you can get Universal Credit if any of the following apply:

• You are part of a couple and your partner is eligible for Universal Credit.
• You are part of a couple responsible for at least one child, and one or both of you is a student.
• You are single and responsible for a child.
• You are over the qualifying age for Pension Credit, and your partner is under that age.
• You have received a Migration Notice telling you to move to Universal Credit and were participating in a course of education before claiming Universal Credit.
• You are already in full-time education and have moved from Employment and Support Allowance to Universal Credit.
• You are disabled, have been assessed as having Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LWRA), and receive Disability Living Allowance or Personal Independence Payment.

If you are studying full-time non-advanced education, you may be eligible for Universal Credit if you do not get a student loan or maintenance grant and are available for work. This only applies if the course is more than 12 hours a week and you are over the age of 19, as parents can claim benefits for their children up to that age.

If you are 21 or under, in full-time non-advanced education, and do not have parental support, you may be eligible for Universal Credit if:

• You are on a full-time course of non-advanced education or training that started before you reached the age of 21.
• You reach the age of 21 while on the course.

In this case, you can continue to get Universal Credit until the end of the academic year in which you turn 21 or the end of the course, if it ends before you turn 21.

If you are studying part-time, you may still be eligible for Universal Credit, but you will have to meet other requirements.

Student Income and Universal Credit

Your student income will affect your Universal Credit payment. Universal Credit is usually paid once a month and is assessed based on your specific circumstances for that month, known as a Universal Credit assessment period. During each assessment period, any student income you receive will be considered when calculating your Universal Credit payments. The amount deducted from your Universal Credit will be your student income for that month, minus a set amount for expenses.

However, no student income will be deducted from your Universal Credit payment if:

• The assessment period covers the first day of the summer holidays.
• You are on summer holiday for the entire assessment period.
• Your course ends during the assessment period.

Special Support Loans and Grants

Special Support Loans or Grants provide help towards the costs of study, such as books, equipment, and travel. These do not count as income for Universal Credit and will not be deducted from your payment.

Student Loans for Maintenance

If you are eligible for a student loan for maintenance, it will be considered income for Universal Credit. The maximum loan you could receive will be taken into account, even if it is reduced due to household income. Dependent grants or lone parent grants paid in addition to your loan will also be considered income, but other grants are usually disregarded unless they are to support your partner or child or pay rent covered by Universal Credit.

Grants

If you do not receive a loan for maintenance but get a grant for income, this will be taken into account for Universal Credit, subject to certain disregards. These include grants for tuition fees or exams, expenses paid due to disability, extra costs for residential study away from your usual place of study during term time, the costs of your normal home if you live elsewhere during your course (unless those costs are met by Universal Credit), living expenses for another person not included in your Universal Credit claim, and expenses for books, equipment, course travel, or childcare costs.

Frequently asked questions