The DWP has issued a new statement on Universal Credit eligibility rules after questioning from an MP
The DWP has released a statement on Universal Credit eligibility criteria amid calls for ‘appropriate support’. The issue has come under scrutiny as Brits grapple with mounting pressures from inflation and the cost of living crisis.
The UK Consumer Prices Index (CPI) inflation rose to 3.3% in March, a three-month high, driven by rising fuel costs. An MP has now questioned the government about student eligibility for Universal Credit support in the UK.
Shivani Raja, Conservative MP for Leicester East, posed a question to the Department for Work and Pensions. The MP enquired “what steps his department is taking to help ensure that the interaction between Universal Credit and student finance results in appropriate support for eligible students.”
Stephen Timms – Minister of State (Department for Work and Pensions) – responded today, Tuesday, April 28, to say: “Students are generally expected to access support for tuition fees and living costs through the student support system. This means most full‐time students are not usually eligible for Universal Credit, unless they fall into specified exception groups (e.g. disabled students, students with children, some young people without parental support).
“Students who are eligible for Universal Credit have their maintenance loans treated as income for the purpose of Universal Credit. The student support system is designed to meet their living cost needs during study.
“Tuition fee loans are disregarded in the calculation of a Universal Credit award, along with grants such as those recognising a disability or for childcare costs. Any Special Support Loan/Grant is also disregarded in these calculations.”
This week, a wave of economic figures has revealed that the conflict in Iran has contributed to pushing inflation upwards. Statistics released by the Office for National Statistics (ONS) on Wednesday showed that UK Consumer Prices Index (CPI) inflation rose to 3.3% in March, a three-month-high, driven by surging fuel costs.
Motor fuel prices soared by 8.7% month-on-month – the biggest rise since June 2022 – as disruption to oil production and transportation pushed diesel and petrol prices up. Meanwhile, on Friday, Bank of England research revealed that UK businesses cautioned that food inflation could surge as high as 7%, as they revised their inflation forecasts for the coming year.
Additional economic figures also suggested that activity within the UK economy has proved more robust than anticipated. The ONS confirmed the UK economy expanded by 0.5% in February, surpassing predictions of 0.1%, prior to the conflict breaking out.
Elsewhere, UK retail sales volumes exceeded expectations, boosted by fuel purchases, with motorists buying more in March in an effort to stock up amid climbing prices.
What are the rules on Universal Credit for students?
According to the gov.uk website, Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re a student, the government says, although it depends on your circumstances.
The guidance online states that you may be entitled to Universal Credit if you receive a student loan or grant. Your student income, including loans and grants, can impact the amount of Universal Credit you receive.
Student loans
Maintenance loans, covering expenses such as living costs and accommodation, are considered income and factored into your Universal Credit calculation. However, loans for tuition fees and other study-related expenses are not included.
The maximum student maintenance loan you qualify for will be considered when calculating your Universal Credit. This remains the case even if you have:
- not applied for a loan
- not accepted the loan
- chosen 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
- received a reduced loan because you receive a grant
Universal Credit is typically paid monthly and reflects your circumstances during that month, known as your ‘assessment period’. Any maintenance you receive will reduce your Universal Credit for each assessment period during which you’re attending the course.
The deduction is calculated by dividing your student finance (or what you’re eligible for) by the number of assessment periods in your academic year. The government guidance notes that for every £1 you’re entitled to receive from a maintenance loan, your Universal Credit will be reduced by £1.
For each assessment period, when calculating your income officials disregard the first £110. They say no student income will be deducted from your Universal Credit if:
- the assessment period includes the first day of the summer break
- you’re on summer break for the entirety of a following assessment period
- your course finishes during the assessment period
Special Support Loan or Grant
If you’re in receipt of a Special Support Loan or Grant, this won’t be deducted from your Universal Credit. A Special Support Loan or Grant offers assistance with study-related expenses, such as books, equipment and travel.
You may qualify for a Special Support Loan or Grant if you receive or are eligible for:
- income-related Employment and Support Allowance
- Housing Benefit
- the housing element of Universal Credit
You may receive the Special Support Loan or Grant if, for instance, you’re a lone parent or have certain disabilities, officials say. For those living in England, the Special Support Grant was replaced by the Special Support Loan from the start of the 2016 to 2017 academic year.
For Welsh residents, it’s known as a Special Support Grant. You’ll be informed whether you qualify for the loan or grant when applying for student finance.
Student grants
Additionally, full-time higher education students may be eligible for a non-repayable government grant to assist with accommodation and other living expenses, guidance states. Various other grants are available to help with matters like childcare, tuition fees or examination fees.
If you’re claiming Universal Credit and qualify for a student loan, your student grant will be considered for particular amounts covering:
- your rent costs
- the maintenance costs of another person included in your Universal Credit award
If you receive Universal Credit and don’t qualify for a student loan, the following student grants won’t be counted in the assessment:
- tuition and examination fees
- your disability
- expenses for residential study away from an educational establishment
- living away from your usual place of study
- maintenance of dependent adult (if the Universal Credit award does not include an amount for this person)
- books and equipment
- travel expenses
- childcare costs
For more information, visit the gov.uk website.
