Benefits for Students in Scotland Handbook
Part 1: Benefits and tax credits
Chapter 11: Universal credit
This chapter covers:
1. What is universal credit ()
2. Who is eligible ()
3. Basic rules ()
4. Amount of benefit ()
5. Claiming universal credit ()
6. Challenging a decision ()
7. Other benefits and tax credits ()
– Universal credit (UC) is a new benefit, replacing means-tested benefits and tax credits.
– Full-time students can qualify if they are a parent, have a non-student partner and in some other circumstances.
- Part-time students who are able to meet their work-related requirements can qualify.
- It can include amounts for adults, children, illness, caring responsibilities, rent and childcare costs.
– You claim with your partner, and you are paid monthly in arrears in a single household payment.
–The amount you get is usually affected by any grant, loan or other income you have.
Universal credit (UC) is a new means-tested benefit for people of working age.
UC has now been rolled out in all areas, so you cannot usually make a new claim for a benefit or tax credit that UC is replacing and must claim UC instead (see , , , , and ). Once you claim UC, you remain on UC (provided you are still eligible), even if your circumstances change.
UC replaces the following benefits and tax credits:
income-based jobseeker’s allowance;
income-related employment and support allowance;
child tax credit;
working tax credit.
If you are a full-time student, you are only eligible for UC in some circumstances – broadly, if you are a parent, have a disability, if you are a young student in non-advanced education and without parental support, or if you have a partner who is not a student.
The amount you get is based on your circumstances (eg, whether you have a partner or child, or care for someone with a disability) and is usually affected by any grant, loan or other income you have.
To qualify for universal credit (UC), you must satisfy all the basic rules described on . Most students cannot claim UC, although there are some exceptions (see below). For UC, a student is referred to as someone 'receiving education'.
You are 'receiving education' if you are:
–a qualifying young person. This applies if you are in non-advanced education of at least 12 hours a week and have not yet reached 31 August after your 19th birthday;
–undertaking a full-time course of advanced education (see – the rules are the same as for income support);
–on another full-time course for which a loan, grant or bursary is provided for your maintenance;
– on a course that is not compatible with your ’work-related requirements’ (ie, what you are expected to do in terms of looking for work) and you are not covered by the above three bullet points.
You are 'undertaking a course' from the day you start the course until the last day of the course (or an earlier date when you abandon or are dismissed from the course).
If you do not count as receiving education, you can claim UC in the same way as anyone else.
If you count as receiving education, you are only eligible for UC if you:
are responsible for a child or young person;
are under 22 on a non-advanced course, you were under 21 when you started the course, and you are ’without parental support’ (see below);
have limited capability for work and also get disability living allowance or personal independence payment. Note: if the DWP refuses to allow you to claim UC and be assessed for limited capability for work, you may be able to claim contributory employment and support allowance in order to establish your limited capability for work, and then claim UC once this has been established;
are a single foster parent;
are a member of a student couple and one of you is a foster parent;
are over pension age and your partner has not yet reached that age;
are making a joint claim with your partner who is not a student, or who is a student but would be eligible for UC her/himself while studying;
have taken time out because of illness or caring responsibilities, you have now recovered or your caring responsibilities have ended, and you are not eligible for a grant or loan.
If you are in one of the above groups and have a partner who is also a student, you can make a joint claim for UC with her/him, even if s/he is not in one of these groups.
Without parental support
'Without parental support' means you:
–are an orphan; or
– cannot live with your parents because you are estranged from them, or because there is a serious risk to your physical or mental health, or you would face significant harm if you lived with them; or
– are living away from your parents, and they cannot support you financially because they are ill or disabled, in prison or not allowed to enter Great Britain.
Note: if you are aged 16 or 17 and receiving education, you can only claim UC if you are covered by one of the first three bullet points above – ie, you have a child, you are without parental support and in non-advanced education, or you are ill or disabled. If you are a 16/17-year-old care leaver and are receiving education, you can only claim if you have a child or are ill or disabled, and you cannot get help with housing costs.
Jodie is 18 and on UC. She starts a full-time course of non-advanced education. She is estranged from her parents. She is still eligible for UC.
Lewis is on UC. He moves in with his partner Liz, who is on a full-time advanced course and has a three-year-old child. They are eligible for UC.
Pauline is 23 and is on UC. She starts a full-time non-advanced course. The DWP decides that her course is not compatible with her work-related requirements, so she counts as 'receiving education'. She is single and not disabled. She is not eligible for UC while she is on her course.
Karen is on UC. She moves in with her partner, Jake, who is unemployed. Karen starts a full-time advanced course. They are still eligible for UC.
Donna is a lone parent with a nine-year-old son. She is on housing benefit (HB) and child tax credit (CTC). In the summer vacation she claims UC and her HB and CTC stop.
There are no work-related requirements if you are receiving education and you are:
under 22 (and were under 21 when you started your course), in non-advanced education and have no parental support; or
eligible for UC as a student (unless you are eligible after having taken time out because of illness or caring responsibilities) and you get a student loan for maintenance, or a maintenance grant that is taken into account for UC. This only applies during the period of the year in which your student income is taken into account. Normally, this is over the academic year (see Chapter 16). Over the summer vacation you may be subject to work-related requirements.
If you are not exempt from work-related requirements under the rules above and not exempt for any other reason (eg, because you have a child under one or you are severely disabled), you must meet your work-related requirements, otherwise you can be sanctioned. This means that your UC is reduced by the level of your standard allowance (see ). You may be able to challenge a sanction. If you are given a sanction, get advice as soon as possible.
Sukhi is a full-time further education student. She gets a bursary maintenance allowance. She has a 12-year-old daughter. She claims UC. Because she gets a student grant for maintenance, no work-related requirements apply.
Sean is a lone parent with one child aged eight, studying a full-time Higher National Diploma course. He claims UC and does not have any work-related requirements applied because he gets a student loan. His long vacation starts on 12 June 2020. For the assessment period covering 13 June and the next two assessment periods, which are wholly within his summer vacation, he is subject to work-related requirements. If Sean cannot meet these requirements, he may be sanctioned and his UC reduced.
Universal credit (UC) is for people on a low income who are in or out of work. You can claim regardless of your circumstances, provided you meet the basic rules about age, education, residence, income and capital. So, for example, lone parents, people with a disability, carers and unemployed people can all claim UC. So if you are a student, you can only get UC if you meet the basic rules and are in one of the groups of student who are eligible for UC.
As well as being a student who is eligible to claim UC, you must satisfy all the following conditions.
You are aged 18 or over. There are exceptions for some 16/17-year-olds – eg, if you are estranged from your parents, are a parent yourself, are sick or disabled or if you are caring for someone with a disability.
You are under pension age (see ). You can are also eligible if you have a partner who is over pension age, provided you are under pension age.
You are in Great Britain, satisfy the ’habitual residence’ and the ’right to reside’ tests, and are not a ’person subject to immigration control’. These terms are explained in CPAG’s Welfare Benefits and Tax Credits Handbook.
You have no more than £16,000 capital.
Your income is less than your ’maximum amount’ of UC (see ).
You have agreed a ’claimant commitment’, setting out what you must do to receive your UC. If you have a partner, you must each agree a claimant commitment to get benefit.
The amount of universal credit (UC) you get depends on your circumstances and the circumstances of your partner. The amount also depends on your and your partner’s income and capital. Go through the following steps to work out the amount of UC to which you are entitled.
If your capital is over £16,000, you cannot get UC. Some kinds of capital are ignored. For details, see CPAG’s Welfare Benefits and Tax Credits Handbook.
Your maximum amount is worked out by adding together the monthly amounts of the standard allowance and any other elements for which you are eligible.
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