Students and Universal Credit: Check Eligibility and How to Apply

Universal Credit, or UC, is designed as financial support for people of working age who are on a low income or out of work. 

The fundamental principle of the benefit is that it is not intended to duplicate funding provided by student finance or educational grants. 

Therefore, the general rule is that full-time students cannot claim Universal Credit. 

However, the Department for Work and Pensions, or DWP, acknowledges that certain groups of students face severe financial vulnerability and are granted exceptions to this rule. 

These exceptions are crucial for ensuring that those with specific responsibilities or disabilities can still pursue education without facing destitution. 

What counts as a full-time student for Universal Credit?

The DWP generally classifies you as a full-time student if you are on a course defined as full-time by your educational provider, or if you are on a course for which a student loan or maintenance grant is available. 

This usually includes:

1. Courses leading to a degree, postgraduate degree, Higher National Diploma, or equivalent advanced qualification.
2. Any full-time course of study that would prevent you from meeting the work-related requirements of your Claimant Commitment.

If you are defined as a full-time student, you must meet one of the strict exceptions to be eligible for Universal Credit. 

If you are studying part-time, you are not usually excluded from claiming Universal Credit, provided your course is compatible with your work-related requirements.

What are the main exceptions that allow students to claim UC?

While the general rule is exclusion, certain full-time students are allowed to claim Universal Credit due to their personal circumstances. 

You can be eligible for Universal Credit if you are a full-time student and any of the following applies:

1. Responsibility for a Child: You are responsible for a child, either as a single person or as a couple where at least one of you is a student.
2. Disabled Students: You have been assessed as having limited capability for work, or LCW, before starting your course, and you are entitled to a qualifying disability benefit, such as Personal Independence Payment, or PIP, or Disability Living Allowance, or DLA.
3. Non-Student Partner: You live with a partner who is not a student, and that partner is eligible for Universal Credit.
4. Young Students without Parental Support: You are under 21, or reached 21 while on the course, studying for a qualification up to A-level equivalent, and you do not have parental support, for example, because you are estranged or an orphan.
5. Migration Notice: You have received a Migration Notice letter from the DWP telling you to move to Universal Credit from a legacy benefit.

How does my student income affect my Universal Credit payment?

If you are eligible to claim Universal Credit as a full-time student, the money you receive through student loans and grants will still affect the amount of Universal Credit you are paid. 

The DWP calculates your student income and uses it to reduce your Universal Credit entitlement.

1. Maintenance Loan: Your student loan for maintenance is generally averaged out over the number of months in your academic year for which it is paid.
2. The Disregard: A set amount, currently £110 per month, is disregarded from your calculated monthly student income.
3. Calculation: The remainder of your calculated monthly student income is counted as unearned income and deducted pound for pound from your maximum Universal Credit award.

It is important to note that the DWP may calculate your benefit based on the maximum student loan available to you, even if you choose not to apply for or accept the full amount.

Will I have to look for work as part of my Claimant Commitment?

If you are a student who meets one of the exceptions and is entitled to Universal Credit, your work-related requirements will depend based on your claim.

1. No Work Requirements: You will have no work-related requirements if you have been assessed as having Limited Capability for Work and Work Related Activity, or LCWRA, or if you are a single parent with a child under the age of one. Students aged 21 or under in non-advanced education without parental support also have no work requirements.
2. Limited Requirements: If you are a disabled student assessed as having only LCW, or if you are a student lone parent with a child aged one to four, you may have limited work-related requirements, such as attending work-focused interviews.

If you are a part-time student and not exempt, you will be expected to meet work-related requirements that are compatible with your studies, which may involve looking for work.

How do I apply for Universal Credit as a full-time student?

The process for applying is the same as for any other claimant, but you must ensure you tick the correct boxes regarding your student status and exemption.

1. Online Application: You must create an account and apply for Universal Credit online through the official government website.
2. Partner Claim: If you live with a partner, you must both create accounts and make a joint claim, even if your partner is the only one who qualifies under an exception.
3. Evidence: Be prepared to upload evidence of your exemption, such as proof of your child’s birth, evidence of your disability benefits, and confirmation from your education provider regarding your course and funding.

You must complete your claim within 28 days of setting up your online account.

What happens to my Universal Credit over the summer holidays?

The assessment of your student income is paused during the academic summer holiday period, which is typically beneficial to claimants.

1. Income Disregard: Student loans and grants are not counted as income for any Universal Credit assessment period that falls wholly within the summer holiday period.
2. Increased Payment: This means that your Universal Credit payment will likely be higher during the summer months, providing a vital source of income during the non-term time.
3. Work Requirements: However, if you are not in one of the non-work-related groups, you may find that your work coach applies work-related requirements during the summer break, as you will not be attending classes.

Where should I go for help and advice before claiming?

Because the rules for students and Universal Credit are complex, it is highly recommended that you seek independent advice before starting your claim.

1. Citizens Advice: The Citizens Advice Help to Claim service offers free, confidential support for making a new Universal Credit claim.
2. University/College Student Support: Your university or college should have a dedicated student welfare or money advice team that can check your eligibility and help you calculate the impact of your student finance on your Universal Credit.

Getting professional advice is the best way to ensure you claim correctly and do not lose money you are entitled to.