UK Student Finance
An A-Z of Student Finance

Benefits for Students on Low Incomes

Most full-time students are not entitled to claim social security benefits. However, those in certain vulnerable groups may be eligible for benefits such as Housing Benefit or Income Support.

If you are already claiming benefits and want to take a full-time course of higher education, you should ask your local Jobcentre Plus office how this may affect your benefits.

Which Students Can Claim Benefits?

Although most full-time students are not entitled to benefits but you may be able to claim if you are:

·        a lone parent

·        a student couple with children (Housing Benefit and Council Tax Benefit – different rules apply for the other benefits)

·        a disabled student

·        a couple where one partner is not a full-time student

·        studying part-time and on a low income

However, if you have a partner who is not a student and they are eligible for any of the income-related benefits, your partner can claim on behalf of you both.

Your student adviser at college or university will be able to give you advice about whether you qualify.

If you are eligible to claim, this is known as having an ‘underlying entitlement to benefit’. However, it does not necessarily mean that you will receive the benefit because the level of your income from student support may be too high.

Special Support Grant

New full-time students who are eligible for social security benefits may be able to get a Special Support Grant, a non-repayable grant of up to £2,700 a year. The Special Support Grant will not affect the amount of benefits you are entitled to receive.

Students who receive the Special Support Grant will not be eligible to get the new Maintenance Grant.

Will These Grants Affect Other Benefits?

Your eligibility to claim social security benefits will depend on your personal circumstances, such as your savings and income.

If you are eligible to claim while you are a student, the following will count as income:

·        any student loan you are entitled to receive, even if you choose not to take the loan

·        Adult Dependants’ Grant

·        Maintenance Grant (for new full-time students starting from September 2006)

The following will not count as income:

·        Higher Education Grant (for full-time students whose courses began in 2004/2005 or 2005/2006)

·        Tuition fee grant (for full-time students whose courses began before September 2006)

·        Childcare Grant

·        Parents’ Learning Allowance

·        Access to Learning Fund payments that are not meant for general living costs

·        Special Support Grant (for new full-time students starting from September 2006)

If you receive other sources of finance, speak to your student adviser at college or university to find out whether they are counted as income for benefit purposes.

Income Support

You may be able to claim Income Support as a student if:

·        you’re aged 16 to 59

·        you’re either a lone parent or disabled

·        you're not working, or work on average less than 16 hours a week

and:

you have savings of less than £16,000

Housing Benefit

You may be able to claim Housing Benefit as a full-time student if you have a low income, savings of less than £16,000 and are:

·        on Income Support or Jobseeker’s Allowance

·        a lone parent

·        a student couple with one or more children

·        disabled

Council Tax

If you are a full-time student, you may be exempt from paying Council Tax or have your Council Tax bill reduced. Ask at your college or university for proof of your full-time student status to present to your local authority.

Part-time students, however, are liable to pay Council Tax.

If you are liable for Council Tax, you may be able to claim Council Tax Benefit if you have a low income, savings of less than £16,000 and are:

·        on Income Support or Jobseeker’s Allowance

·        a lone parent

·        a student couple with one or more children

·        disabled

Jobseeker’s Allowance
for Part-Time Students

If you are studying part-time, you may be able to claim Jobseeker’s Allowance if you are:

·        out of work or working less than 16 hours a week on average

·        capable of working

·        available for work

·        actively seeking work

·        below retirement age

Normally, you must also be aged 18 or over. You must be willing to go to a job interview, even if you have to take time off from your course. You should also be prepared to rearrange your hours of study to fit around a job.

Incapacity Benefit

This is for people who are incapable of working because of a disability or illness. If you already claim Incapacity Benefit, you may be able to carry on receiving it as a student.

The Disability Officer or Student Services Officer at your college or university will be able to advise you. You can also get information from Skill (National Bureau for Students with Disabilities).

Additional Help Available

Working Tax Credit

You may be able to claim Working Tax Credit as either a full-time or part-time student if you work at least 16 hours a week and at least one of the following applies:

·        you are responsible for a child or qualifying young person

·        you have a disability

·        you are aged 25 or over and normally work at least 30 hours a week

If you receive the childcare element of the Working Tax Credit, you will not be able to claim for the Childcare Grant as well.

 

Child Tax Credit

You may be able to claim Child Tax Credit if you are a student with a child. Higher rates are available if:

·        you have more than one child

·        your child is disabled

·        your child is under one year of age
 

 

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