University Students: Benefits During Summer Holidays?

University students may be able to claim benefits during the summer holidays, depending on their circumstances. Full-time students are generally not eligible for benefits, but there are exceptions. For example, a full-time student who is a lone parent or responsible for a child may be able to claim Jobseeker's Allowance. Additionally, students with a partner who is not a student and is eligible for income-related benefits can claim on their behalf. Part-time students with low incomes may also be able to claim benefits if they meet certain conditions.

Full-time students and Jobseeker's Allowance (JSA)

Full-time students are generally not entitled to claim Jobseeker's Allowance (JSA) during the summer holidays or at any other time of year. This is because JSA is designed to help people who are seeking full-time employment, whereas students are typically not considered to be available for full-time work. Additionally, if you are a full-time student under the age of 25, your parents may still be receiving Child Benefit or Tax Credit for you, which means you are not eligible for JSA.

However, there are a few exceptions to this rule:

• If you are a lone parent with a child under the age of five, or a lone foster parent of a child under 16, you may be able to claim Income Support as a full-time student.
• If you are a refugee who is learning English to obtain employment, you may be eligible for Income Support.
• If you are under 21 or have turned 21 while enrolled in a full-time non-advanced course and you do not have parental support, you may be able to claim Universal Credit.
• If you are a full-time student and need to suspend your studies due to illness or caring responsibilities, you may be able to claim JSA for a limited period. This will end once you return to your studies or at the start of the next academic year, whichever is sooner.
• If you are part of a couple with children, and both of you are full-time students, one partner may be able to claim JSA during the summer vacation.
• If you are a lone parent and are available for work during the summer vacation, you may be able to claim JSA for that period.

It is worth noting that even if you are unemployed and looking for work during the summer holidays, you will not be entitled to JSA if you are a full-time student. Your student loan or grant is expected to cover this period, which is why it is typically higher during your final year of study. Additionally, if you are receiving a student loan or grant, this will usually reduce the amount of income-based JSA you can claim.

Part-time students and Universal Credit

If you are a part-time student, you can only claim Universal Credit if your course does not prevent you from carrying out your work-related activities. Your work-related activities will depend on your circumstances. If you are expected to look for work and be available for work, you will have to show that your course won't stop you from doing this, and you might have to agree to give up your course if you get a job offer.

You might be able to argue that your course will help you to get a job or a better-paid job, and so it should mean you need to spend less time looking for work. You will need to agree on this with your work coach.

If you are in full-time training or 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 in joint claims where your partner is under that age
• You received a Migration Notice telling you to move to Universal Credit and were participating in a course of education before claiming
• 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, Personal Independence Payment, Attendance Allowance, or Armed Forces Independence Payment

If you are studying in full-time non-advanced education, you can get Universal Credit if you do not get a student loan or maintenance grant and are available for work. If the course is more than 12 hours a week, this only applies from 1 September following your 19th birthday, as your parents can claim benefits for you before that date.

Your student income, such as loans and grants, can affect how much Universal Credit you get. Loans for maintenance, such as living costs and rent, are regarded as income and are taken into account when calculating your Universal Credit. Loans for tuition fees and other study costs are excluded.

The maximum student maintenance 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, accepted, or taken the full amount of the loan.

Student income and Universal Credit

Eligibility

Full-time students are usually not eligible for Universal Credit. However, certain categories of full-time students are entitled to it. These include:

• Students aged 21 or under, in full-time non-advanced education, and without parental support.
• Students responsible for a child.
• Students living with a partner who is eligible for Universal Credit.
• Students who have reached the qualifying age for Pension Credit and live with a partner who hasn't.
• Students with a Migration Notice telling them to move to Universal Credit.
• Students with a disability, who were assessed as having limited capability for work before starting their course, and are receiving specific benefits.

Additionally, full-time students may be eligible for Universal Credit if they are not receiving a student loan or maintenance grant and are available for work. This only applies to students over 19, as parents can claim benefits for younger students.

Impact of Student Income on Universal Credit

Student income, such as loans and grants, can affect the amount of Universal Credit received. Loans for maintenance (living costs and rent) are considered income, while loans for tuition fees and other study costs are excluded. The maximum maintenance loan a student is eligible for will be taken into account, even if they have not accepted or have only partially accepted the loan.

Universal Credit is typically paid once a month, based on the circumstances during that period. This is called an 'assessment period'. For every £1 a student is entitled to receive from a maintenance loan, their Universal Credit will be reduced by £1. However, the first £110 of income is ignored for each assessment period.

Student income will not be deducted from Universal Credit if:

• The assessment period covers the first day of the summer holidays.
• The student is on summer holiday for the entire subsequent assessment period.
• The student's course ends during the assessment period.

Special Support Loans or Grants, which assist with study costs like books, equipment, and travel, are also excluded from Universal Credit calculations.

Calculating Universal Credit

To calculate Universal Credit, determine which student income will be included and the number of assessment periods it should be included for. Then, calculate the monthly income to be considered, from which a monthly disregard of £110 is subtracted.

For example, consider a lone parent receiving a student finance maintenance loan of £11,274 (including a special support element of £4,121).

£11,274 - £4,121 (special support element) = £7,153

Divided by nine assessment periods = £794.77 minus £110 monthly disregard = £684.77 student income to be considered in the calculation of the monthly Universal Credit award.

It is important to provide Universal Credit with the student finance award letter, which details the amounts awarded, and to track any changes in circumstances that could impact entitlement to avoid overpayments and potential prosecution.

Full-time students and Income Support

Full-time students are usually not entitled to Income Support. However, there are exceptions to this rule. You may be entitled to Income Support as a full-time student if you are:

• A lone parent with a child under five
• A lone foster parent of a child under 16
• A refugee who is learning English to obtain employment
• Under 21 or have turned 21 while enrolled in or accepted on a full-time non-advanced course and you are without parental support

If you receive student support in the form of a grant or loan, this will probably reduce the amount of Income Support you can get.

Universal Credit

Universal Credit is a means-tested benefit. You will have to find out your student income and what is disregarded before you can calculate how much Universal Credit you will get.

You are counted as having student income if you are undertaking a course and have a student loan or grant for your course.

If you get a grant but don’t get a loan, the grant income is taken into account for Universal Credit. Except for any grant for:

• Tuition and examination fees
• Extra costs of residential study away from your usual place of study during term time
• Costs of your normal home (if you live somewhere else during your course), unless these are met by your Universal Credit
• Maintenance of someone who is not included in your Universal Credit claim
• Books, equipment, course travel costs or childcare costs

If you get a grant and also get a loan and your grant is paid for the same period, it is completely disregarded unless it is for the maintenance of someone who is part of your Universal Credit claim or for rent payments that are met by Universal Credit.

Examples of disregarded grants include:

• Disabled Students’ Allowance
• Parents’ Learning Allowance
• Special Support Grant

If you are planning to receive or have received another type of grant, you will need to check if it will be disregarded.

If you receive regular payments of a grant, it will not be counted as income and will not reduce your means-tested benefits. If you receive a one-off payment of a grant, it will count as capital rather than income. Having capital may affect your means-tested benefits.

Student loans for maintenance count as income. If you could get a student loan for maintenance but do not claim it, your Universal Credit will be calculated as if you had been given the loan.

Other benefits

Full-time students can also claim other benefits, such as Employment and Support Allowance (ESA), Housing Benefit, disability benefits, and help with Council Tax.

Full-time students and Housing Benefit

Full-time students are usually ineligible for Housing Benefit. However, there are some exceptions. If you already have a claim for Housing Benefit, you may be able to continue receiving it while studying. If not, any assistance with housing costs will be paid through Universal Credit, and you will need to meet the eligibility requirements for this.

If you are a full-time student who is already receiving Housing Benefit, you can continue to receive it as a student if you meet one of the following conditions:

• You receive Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance.
• You are a lone parent or a member of a couple who are responsible for a child, and you are both full-time students.
• You are a lone foster carer with a child formally placed with you by a local authority or voluntary agency.
• You receive Disability Living Allowance, Personal Independence Payment, Attendance Allowance, or another specified disability benefit.
• You or your partner are registered blind.
• You have been unable to work due to sickness or disability for at least 28 weeks.
• You qualify for a Disabled Student's Allowance because you are deaf.
• You take time out from your course due to illness or caring responsibilities in certain circumstances.
• You are under 21 on a non-advanced course—age can sometimes be extended to 22.
• You are over 66, and neither you nor your partner are receiving Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance. In this case, you will receive the maximum entitlement to Housing Benefit.

If you are under 66 and receive student support in the form of a grant or loan, this will usually reduce the amount of Housing Benefit you can get. However, if you also receive Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance, you will automatically receive the maximum entitlement to Housing Benefit.

It is important to note that Housing Benefit is being replaced by Universal Credit.

Frequently asked questions