Universal Credit: Student Support During Covid-19

The Covid-19 pandemic has had a significant impact on the financial situation of many people, with some turning to Universal Credit as a source of income. The number of people claiming Universal Credit in the UK doubled during the pandemic, with more than 6 million people receiving the benefit. However, it is estimated that between 430,000 and 560,000 people who were eligible for Universal Credit at the start of the pandemic did not claim it, often due to a lack of awareness or perceived stigma. For those who did claim, deductions and advance loan repayments further reduced their income, pushing some into poverty.

Eligibility criteria for students

Students are usually ineligible for Universal Credit if they are in full-time education. However, there are some exceptions to this rule.

You can make a claim for Universal Credit if you're in full-time education and any of the following apply:

• You are aged 21 or under, in full-time non-advanced education (up to A-Level or equivalent) and do not have parental support.
• You are responsible for a child, either as a single person or as a couple.
• You live with your partner, and they are eligible for Universal Credit.
• You have reached the qualifying age for Pension Credit and live with a partner who is under that age.
• You have received a Migration Notice telling you to move to Universal Credit.
• You have a disability, were assessed as having limited capability for work before starting your course, and are getting Personal Independence Payment (PIP), Disability Living Allowance (DLA), Child Disability Payment (in Scotland), Attendance Allowance, or Armed Forces Independence Payment.

You may also be able to claim Universal Credit if you are studying full-time non-advanced education, do not receive 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 starts after your 19th birthday, as parents can claim benefits for their children before that date.

If you are a student with a disability or health condition, you can claim Universal Credit if you are in full-time education and have been assessed as having limited capability for work by a Work Capability Assessment before starting your course. You must also be entitled to one of the following benefits:

• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)
• Child Disability Payment (CDP) in Scotland
• Attendance Allowance
• Armed Forces Independence Payment
• Adult Disability Payment (ADP) in Scotland
• Pension Age Disability Payment (PADP) in Scotland

If you are aged 16 or 17, you can make a claim for 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 receives 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.

How to claim

If you're a student looking to claim Universal Credit during the COVID-19 pandemic, here is a step-by-step guide on how to do it:

Step 1: Seek Independent Advice

Before starting your claim, it's a good idea to seek independent advice to make informed decisions. You can use the 'help to claim' service provided by Citizens Advice in partnership with Jobcentre Plus. Although their offices are closed, you can access their services online or by calling their National Adviceline on 0344 4111 444.

Step 2: Check You're Claiming the Correct Benefit

Ensure that you're claiming the right benefit. If you've paid enough National Insurance Contributions, you may be eligible for New Style Jobseekers Allowance or New Style Employment and Support Allowance. These benefits might be more financially beneficial for you than Universal Credit.

Step 3: Create a Universal Credit Account Online

Go to the GOV.UK website to create your Universal Credit account. After registering, you will receive an email confirmation from the DWP (Department for Work and Pensions).

Step 4: Be Careful with GOV.UK Verify

When creating your account, you will need to confirm your identity. GOV.UK Verify is the digital ID system used. If you already have a Verify account, you can use it to speed up the process. However, if you don't have one, it's better to choose the 'I cannot verify' option, as Verify can cause significant delays. Instead, provide details of your ID, such as your passport or driver's license, and the DWP will arrange ID verification via a Biographical Test, which can be done over the phone.

Step 5: Request a Telephone Call Back

Once you receive the confirmation email from the DWP, log into your Universal Credit account and request a telephone call back under the 'Appointments' option in your Journal. You will be notified of the appointment via text or email, depending on your preference.

Step 6: While Waiting for the Call Back

In the meantime, continue calling the Universal Credit Claim Line on 0800 328 5644.

Step 7: Request an Advance Payment

When asking for the Bio Test, also remember to request the advance payment option if you need funds urgently.

Please note that these instructions were correct as of 31 March 2020. For the most up-to-date information, it is recommended to check the official government websites and seek the latest advice.

Advance payments

If you are a student claiming Universal Credit during the COVID-19 pandemic, you may be eligible for an advance payment. This is an upfront payment of your benefit, which can be useful if you need money to cover living costs while you wait for your first payment.

The maximum amount you can receive as an advance payment is the amount of your first estimated payment. This advance is paid back from your Universal Credit in instalments over 12 months, with that being extended to 24 months from October 2021. You can choose how many months you pay the advance back over, but the advance must be paid back within 12 months. It's important to note that you will have to start paying back the advance out of your first Universal Credit payment, which means your first payment will be lower than the estimated amount.

To apply for an advance payment, you will need to:

• Tell the Department for Work and Pensions (DWP) why you need the advance.
• Provide your bank details so the money can be paid if an advance is agreed.
• Have your identity checked.
• Prove that you will be able to pay the advance back.
• Agree to pay the advance back.

You can only apply for an advance online if you are within your first Universal Credit assessment period, and you will usually be told if you can get an advance on the same day that you apply for it. It's also important to be aware that interest is not paid on the advance, so the total amount paid back is the same.

Deductions from benefits

During the first wave of the COVID-19 pandemic, around one million Universal Credit claimants in the UK had deductions from their benefits. These deductions were found to significantly deepen poverty for claimants, with nearly two-thirds (63%) of those claiming Universal Credit between March and June 2020 living on less than their assessed needs.

Deductions from Universal Credit can occur for a range of reasons, including:

• Repayment of an advance loan: During the pandemic, many claimants took out advance loans while waiting five weeks for their first Universal Credit payment. These loans then had to be repaid through deductions from subsequent payments.
• Budgeting loans: Budgeting loans are offered by the government to help with certain one-off costs, such as furniture or other household items. These loans must be repaid, and this is often done through deductions from Universal Credit payments.
• Rent arrears: If a claimant falls behind on their rent payments, their landlord or local council can request that deductions be made from their Universal Credit payments to cover the rent owed.
• Utilities bills: If a claimant falls behind on their utility bills (electricity, gas, water), deductions may be made from their Universal Credit payments to cover the outstanding costs.
• Mortgage interest: For claimants who own their homes, deductions may be made from their Universal Credit payments to cover mortgage interest payments if they fall behind.

The amount that can be deducted from Universal Credit is limited to 30% of the monthly standard allowance. This still allows for significant deductions, such as £179 per month for couples. These deductions can have a severe impact on claimants' ability to meet their basic needs and can push them further into poverty.

In addition to these deductions, student income, such as maintenance loans and grants, can also affect Universal Credit payments. Maintenance loans for living costs and rent are considered income and are taken into account when calculating Universal Credit. For every £1 a claimant is entitled to receive from a maintenance loan, their Universal Credit is reduced by £1. However, loans for tuition fees and other study costs are excluded from this calculation.

It is important to note that student income will not be deducted from Universal Credit during the summer holiday period or if the course ends during the assessment period. Additionally, Special Support Loans or Grants, which are provided to help with study costs such as books and equipment, are not taken into account when calculating Universal Credit deductions.

Support and advice services

If you are a student seeking financial support during the COVID-19 pandemic, there are several support services and advice available to help you navigate the process of claiming Universal Credit and accessing additional resources.

Firstly, it is recommended to seek independent advice to make informed decisions about your benefits. Organisations like Citizens Advice provide a 'help to claim' service in partnership with Jobcentre Plus. Although their offices may be closed, Citizens Advice offers assistance online and via their National Adviceline (0344 4111 444). They can guide you through the process and help you claim Universal Credit or other relevant benefits.

Secondly, it is important to determine whether you are claiming the correct benefit. Assess whether you have paid enough National Insurance Contributions to be eligible for New Style Jobseekers Allowance or New Style Employment and Support Allowance. In some cases, claiming these benefits may be more financially beneficial for you than Universal Credit.

When creating your Universal Credit account online through the GOV.UK website, exercise caution when using GOV.UK Verify for identity confirmation. As this digital ID system can cause delays in the application process, consider opting for the 'I cannot verify' option if you don't already have a Verify account. The DWP will then arrange for alternative identity verification, such as a Biographical Test/Bio Test, which can be conducted over the phone more efficiently.

While waiting for a response to your Universal Credit application, stay in touch with the Universal Credit Claim Line (0800 328 5644) to ensure you are actively pursuing your claim. Additionally, if you require immediate financial assistance, remember to request an advance payment when asking for the Bio Test.

Depending on your specific circumstances, you may also explore additional support services. For instance, if you are struggling with rent or council tax payments, local councils may provide help and guidance. They can also advise you on discretionary housing payments if you receive Housing Benefit or the housing element of Universal Credit. Charities like Step Change can assist with managing debt, and Citizens Advice offers a comprehensive range of support, including advice on benefits, debt, money, and housing.

Remember, these support and advice services are available to help you navigate the benefits system and access the financial assistance you need during the COVID-19 pandemic. Don't hesitate to reach out and utilise these resources to ensure you receive the support you are entitled to.

Frequently asked questions