Can Students Claim Universal Credit?

Universal Credit is a cornerstone of the UK’s social welfare system, providing financial support to millions of individuals and families.

However, when it comes to students, the rules are not straightforward. Many students wonder if they qualify, especially given the rising costs of living and the financial pressures of pursuing education.

While most full-time students are excluded from claiming Universal Credit, there are notable exceptions for specific groups. These include students with disabilities, those responsible for a child, or individuals without parental support.

Understanding these rules, how student income affects claims, and the nuances of eligibility is critical for any student seeking to supplement their finances.

This comprehensive guide explores everything students need to know about Universal Credit, including eligibility criteria, income calculations, and the application process.

Are Full-Time Students Eligible for Universal Credit?

For the majority of full-time students, Universal Credit is not an option.

The benefit system is designed primarily to support individuals with low income or unemployment, and the government assumes that most full-time students receive financial support from loans, grants, or parental contributions.

However, specific exceptions allow certain groups of full-time students to claim Universal Credit.

Key Exceptions for Full-Time Students

1. Students Aged 21 or Under in Non-Advanced Education Without Parental Support
   • This applies to students who are estranged from their parents or those who have left care provided by their local council.
   • To qualify, students must be enrolled in a full-time non-advanced course (such as A-Levels, BTEC Level 3, or NVQs up to Level 3) before their 21st birthday.
   • They can continue claiming Universal Credit until the academic year in which they turn 21 or until the course concludes, whichever comes first.
2. Students Responsible for a Child
   • Full-time students who are parents, including adoptive parents and foster carers, are eligible.
   • For couples, both partners can be students and still qualify if they are responsible for a child.
3. Disabled Students
   • Disabled students receiving Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance, or Armed Forces Independence Payment can claim Universal Credit.
   • They must also have been assessed as having limited capability for work before starting their course, often through a Work Capability Assessment (WCA).
4. Students Living with an Eligible Partner
   • If a student lives with a partner who qualifies for Universal Credit, they can submit a joint claim.
5. Qualifying Age for Pension Credit
   • Students who have reached the age of Pension Credit eligibility can claim Universal Credit if their partner is under that age and qualifies.
6. Migration Notice
   • Students who receive a Migration Notice instructing them to transition from another benefit to Universal Credit are eligible.
7. Non-Advanced Education Without Loans or Grants
   • If a student is in non-advanced education, does not receive student loans or grants, and is available for work, they may qualify for Universal Credit.
   • This rule only applies if the course is more than 12 hours per week, and eligibility begins on 1 September following the student’s 19th birthday.

What Counts as a Full-Time Course?

A course is considered full-time if the education provider defines it as such. Typically, full-time courses involve structured study or training that leads to a qualification. Examples include:

• Advanced Courses: University degrees, postgraduate qualifications, and higher national diplomas.
• Non-Advanced Courses: A-Levels, GCSEs, BTEC Level 3, NVQs, and other qualifications up to Level 3.

Even if a student attends a full-time course on a part-time basis, they are still treated as a full-time student under Universal Credit rules.

How Does Student Income Affect Universal Credit Eligibility?

Student income plays a critical role in determining how much Universal Credit a student may receive.

The government views most student income as a means to support living costs, which reduces the Universal Credit entitlement. Here’s a breakdown of how various types of student income are treated:

Maintenance Loans

Maintenance loans, which cover living costs like rent and food, are treated as income in Universal Credit calculations.

How It’s Calculated?

• The total maintenance loan is divided by the number of Universal Credit assessment periods in the academic year.
• For every £1 received in a maintenance loan, Universal Credit payments are reduced by £1 after deducting the first £110 in each assessment period.

Important Notes:

• Even if a student chooses not to take the full amount of their maintenance loan, the maximum amount they are eligible for is still considered in the calculation.
• Maintenance loans for tuition fees or costs like books and travel are excluded.

Special Support Loan or Grant

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

• These are typically awarded to students with disabilities, single parents, or those receiving Housing Benefit or other income-related benefits.

Postgraduate Loans

Postgraduate students can access loans for tuition fees and living costs. While these loans are treated as income, only a portion affects Universal Credit.

Treatment of Postgraduate Loans:

• For Postgraduate Master’s and Doctoral Loans, only 30% of the total loan amount is considered as income.
• The remaining 70% is ignored in Universal Credit calculations.

Student Grants

Grants are usually treated as income if they are intended to cover living expenses. However, specific types of grants are excluded, including:

• Disability-related grants.
• Childcare grants.
• Travel expenses.
• Tuition and examination fees.
• Key Consideration: If a student is eligible for both a grant and a maintenance loan, the grant may reduce the amount of the maintenance loan they receive, which can further impact Universal Credit calculations.

Timing of Student Income Assessments

Student income is assessed during the academic term and affects Universal Credit payments during that period. However:

• No student income is considered during summer holidays.
• Payments are adjusted when courses end or if the student drops out.

Are Part-Time Students Eligible for Universal Credit?

Part-time students have a clearer pathway to claiming Universal Credit compared to full-time students.

This is because part-time courses often allow students to meet the availability for work and job-seeking requirements set by the Department for Work and Pensions (DWP). However, certain conditions and criteria must still be met to qualify.

General Eligibility for Part-Time Students

Part-time students can claim Universal Credit if they:

1. Are available for work and actively seeking employment.
2. Meet the standard eligibility requirements for Universal Credit, such as being on a low income or having a disability.
3. Can demonstrate that their course does not interfere with their ability to meet their work-related commitments.

Courses Exceeding 12 Hours Per Week

For non-advanced education courses (e.g., GCSEs or A-Levels), part-time students may only claim Universal Credit if:

• They are over the age of 19 and have reached 1 September following their 19th birthday.
• Their parents are no longer claiming benefits for them.

This is because the government assumes that parents or guardians are financially responsible for students under the age of 19.

Evidence Required for Part-Time Study

Students claiming Universal Credit must provide detailed evidence about their course, including:

• The number of hours spent on study and training each week.
• The duration and schedule of the course.
• A statement from the education provider confirming the course is part-time.

Special Cases for Students Claiming Universal Credit

While most students are not eligible for Universal Credit, there are specific scenarios that allow certain groups of students to claim. These special cases provide a safety net for students in vulnerable or unique situations.

1. Students with Disabilities

Disabled students receiving benefits like Personal Independence Payment (PIP), Disability Living Allowance (DLA), or Attendance Allowance may qualify for Universal Credit.

• Limited Capability for Work: They must have been assessed as having limited capability for work before starting their course, often through a Work Capability Assessment (WCA).
• Exemption from Work Commitments: If their condition prevents them from working, they may not be required to meet job-seeking or availability requirements.

2. Care Leavers and Estranged Students

Students who have left local authority care or are estranged from their parents can claim Universal Credit if:

• They are under 21 and enrolled in full-time non-advanced education or training.
• They began their course before turning 21.

Eligibility continues until the end of the academic year in which the student turns 21 or until their course concludes.

3. Students with Children

Students responsible for a child, whether biological, adoptive, or foster, are eligible for Universal Credit.

• Couples: Both partners can be students and still claim if they meet other eligibility requirements.
• Single Parents: Single parents often qualify for additional support through Universal Credit, including childcare costs.

4. Students Living with an Eligible Partner

If a student lives with a partner who qualifies for Universal Credit, they can make a joint claim. The partner’s income and circumstances are assessed as part of the claim.

5. Students Migrating from Legacy Benefits

Students instructed to transition to Universal Credit through a Migration Notice are eligible regardless of their student status. This usually applies to those receiving benefits like Income Support or Housing Benefit under the old system.

6. Students Pursuing Non-Advanced Education Without Loans or Grants

Students in non-advanced education who do not receive loans or grants and are available for work may claim Universal Credit. This applies primarily to students in courses like A-Levels, NVQs, or BTECs, provided they meet work-related requirements.

How Can Students Apply for Universal Credit?

Applying for Universal Credit as a student involves several steps and requires thorough preparation. Students must ensure they meet the eligibility criteria and gather all necessary documentation before starting the application process.

Step 1: Create an Online Account

Students should begin their application on the Universal Credit portal.

• Provide basic personal information such as name, address, and National Insurance number.
• Answer questions about your circumstances, including whether you are a student, your course details, and any income sources.

Step 2: Gather Supporting Documentation

Students will need to provide evidence to support their claim, including:

• Proof of Identity: Passport, driving licence, or another government-issued ID.
• Course Details: A letter from the education provider stating whether the course is full-time or part-time, its duration, and weekly hours.
• Income Evidence: Information about maintenance loans, grants, or other student income.
• Living Arrangements: Proof of rent or mortgage payments if claiming the housing element of Universal Credit.

Step 3: Attend an Initial Interview

After submitting the application, students will be invited to attend an interview with a work coach.

• During the interview, students must explain how their course impacts their ability to work or meet claimant commitments.
• Students with special circumstances, such as disabilities or parenting responsibilities, should highlight these factors.

Step 4: Await a Decision

The Department for Work and Pensions (DWP) typically takes up to five weeks to process applications.

• Successful applicants will receive a monthly payment based on their circumstances.
• If rejected, students can appeal the decision by providing additional evidence or clarifications.

Step 5: Maintain Compliance

Once approved, students must ensure they continue to meet Universal Credit requirements:

• Report changes in circumstances, such as changes in income, course hours, or living arrangements.
• Attend regular appointments with a work coach if required.

Key Tips for Applying as a Student

1. Be Transparent: Accurately report all student income, including loans and grants, to avoid overpayments or penalties.
2. Seek Guidance: Consult a student welfare advisor or Universal Credit helpline for assistance with the application process.
3. Stay Organised: Keep copies of all submitted documents and communications with the DWP for future reference.

What Alternatives Exist for Students Needing Financial Support?

For students who are ineligible for Universal Credit or require additional financial assistance, there are various alternatives available to help cover living costs, educational expenses, and other essential needs.

These options include grants, scholarships, bursaries, student finance, and charitable support. Understanding these alternatives can help students manage their finances more effectively while focusing on their studies.

Student Finance England (Loans and Grants)

Most students in the UK rely on funding from Student Finance England (or equivalent bodies in Scotland, Wales, and Northern Ireland). These funds are designed to cover tuition fees and maintenance costs.

Key Components:

• Tuition Fee Loans:
  • Covers the full cost of tuition fees for students enrolled in higher education courses.
  • Paid directly to the university or college.
• Maintenance Loans:
  • Helps with living costs such as rent, food, and bills.
  • The amount depends on household income, where the student lives, and whether they study full-time or part-time.
• Grants:
  • For students in specific circumstances, such as low-income households or those with disabilities.
  • Grants do not need to be repaid, unlike loans.

Students can apply through their national student finance organisation (England, Scotland, Wales, or Northern Ireland) to access these funds.

University Hardship Funds

Most universities and colleges offer hardship funds for students facing financial difficulties. These funds are designed to support students in emergencies or during periods of unexpected financial strain.

Who Can Apply?

• Students from low-income households.
• Those with additional financial responsibilities, such as dependents.
• Students who face unforeseen circumstances, such as illness or family emergencies.

How to Apply?

• Contact the university’s financial aid or student support office.
• Provide evidence of financial hardship, such as bank statements, proof of income, and details of expenses.

Hardship funds are usually non-repayable and can provide one-off payments or ongoing support.

Bursaries and Scholarships

Bursaries and scholarships offer another source of non-repayable funding for students. These awards are often merit-based or need-based, providing financial support without the obligation to repay.

Types of Bursaries and Scholarships:

Merit-Based Scholarships:

• Awarded for academic, sporting, or artistic excellence.
• Examples include the Chevening Scholarship for international students and Commonwealth Scholarships for postgraduate students.

Needs-Based Bursaries:

• Targeted at students from low-income backgrounds.
• Examples include the NHS Learning Support Fund for healthcare students and university-specific bursaries.

Specialised Scholarships: Available for specific groups, such as women in STEM, ethnic minorities, or disabled students.

How to Apply?

Students can search for scholarships and bursaries on university websites, through professional organisations, or via platforms like Scholarship Hub.

Charitable Grants and Trusts

Charities and trusts across the UK provide grants to students who are struggling financially. These grants are often tailored to specific groups, such as single parents, mature students, or those pursuing certain careers.

Examples of Charitable Support:

• Turn2us Grants Search: A platform that helps individuals find grants based on their circumstances.
• The Prince’s Trust: Offers funding for young people starting a course or training.
• Educational Trusts: Many local and national trusts provide funding for education-related expenses.

Students applying for these grants typically need to provide evidence of financial need and details of how the grant will be used.

Benefits for Students with Dependents

While Universal Credit may not be available to most students, certain benefits are accessible to students with dependents or additional responsibilities.

Examples:

• Childcare Grant: Covers up to 85% of childcare costs for full-time students with children.
• Parents’ Learning Allowance: Helps with the additional costs of education for students with children.
• Adult Dependants’ Grant: Available for students with an adult who depends on them financially.

These benefits are non-repayable and can significantly ease financial burdens for students with families.

Conclusion

Navigating financial support as a student can be challenging, especially with the restrictions surrounding Universal Credit eligibility.

However, understanding the specific criteria, exceptions, and how student income impacts claims can provide clarity and direction.

For students who do not qualify for Universal Credit, alternatives such as student finance, bursaries, scholarships, and charitable grants offer vital support.

By exploring all available options, staying informed about eligibility rules, and seeking advice when needed, students can better manage their finances and focus on their academic and personal growth. The key is preparation and awareness, ensuring that no opportunity for support is overlooked.

FAQ

Can full-time students claim Universal Credit?

Full-time students are generally not eligible, but exceptions exist for those with children, disabilities, or those without parental support.

How does a maintenance loan affect Universal Credit?

Maintenance loans are considered income and reduce Universal Credit payments by £1 for every £1 received, after deducting the first £110 in each assessment period.

Can part-time students claim Universal Credit?

Yes, part-time students can claim if they meet standard eligibility criteria and are available for work.

Are postgraduate students eligible for Universal Credit?

Postgraduate students may qualify if they meet specific criteria, such as having a disability or being responsible for a child. Only 30% of postgraduate loans are considered as income.

What support is available for students with dependents?

Students with dependents can access benefits like the Childcare Grant, Parents’ Learning Allowance, and Adult Dependants’ Grant in addition to Universal Credit (if eligible).

Can international students claim Universal Credit?

International students are typically not eligible unless they have settled status or meet specific exceptions, such as being a refugee.

What are the alternatives to Universal Credit for students?

Alternatives include student finance loans and grants, university hardship funds, bursaries, scholarships, and charitable support.