Most full-time students are excluded from claiming means-tested benefits.

There are different rules about students’ entitlement to benefits depending on whether you are applying under the Universal Credit system or under the rules for the benefits Universal Credit replaces.

Who is a full-time Student for Universal Credit

Most full-time students cannot claim Universal Credit, but there are some exceptions.

Universal Credit will treat you as a full time student if:

•   You are on a full time (as defined by your university or college) course that will lead to a
  • Degree or
  • Postgraduate degree or
  • Higher national diploma
• OR You are on a course that gives you a loan or grant for maintenance
• OR You are doing a course that allows someone to claim Child Benefit for you
• OR You have claimant commitments and you are doing a course which is not compatible with your claimant commitments.

You carry on being counted as a student during the holidays.

Who is a full-time Student for Other Means-tested Benefits?

For Jobseeker’s Allowance (JSA), Income Support, income-related Employment and Support Allowance (ESA), Housing Benefit and Council Tax Support, whether you are a full-time student depends on your age and the level of the course.

You are a full-time student if:

• You are not a "qualifying young person" for Child Benefit purposes

• You are not getting a training allowance

• You are not in 'relevant education'.

and

• You are aged under 19 and on a full-time course of ‘advanced education’

or

• You are aged 19 or over and on a full-time course of study at any level, unless you are aged under 20 and can still be treated as in relevant education.

You count as a student from the first day until the last day of the course or if you do not complete it, until the day you are dismissed from or abandon the course. This means that you count as a student even during holidays and when taking time out from studying, unless certain circumstances apply. (See Time out from study within this guide.)

Students with Partners

If you are a full-time student and you live with a partner who is not a student, they may be able to claim means-tested benefits for you both. Some of your student support may be taken into account.

Reviewed : January 2023

If you are a student, you can only claim Universal Credit if:

• You are under 21, taking a course that leading to a qualification at the same level as or below A levels (such as Scottish Highers, National Vocational Qualifications (NVQ) up to level 3) and you do not and cannot live with your parents; or
• You are responsible for a child; or
• You get Attendance Allowance, Disability Living Allowance (DLA), Personal Independence Payment (PIP), Adult Disability Payment or Child Disability Payment and you have limited capability for work. (This can be complicated. Use our Find an Adviser tool to find a local adviser); or
• You are over 66; or
• You live with a partner who can claim Universal Credit; or
• You have taken time out from your course for illness or caring responsibilities, are now recovered/your caring responsibilities have ended, and you are waiting to go back to your course.

Claimant commitment

To be able to get Universal Credit, everyone has to agree to a claimant commitment.

You will not have to do anything under your claimant commitment if:

• You are claiming Universal Credit as a student under 21 doing a course that leads to qualification up to A level standard and you have no parental support.
• You are claiming Universal Credit as a student, and you receive student income such as a grant or a loan for maintenance.

Even if you don’t fall into either of these two groups, you might not have to do anything under the normal rules on claimant commitments.

You will have to take some actions as part of your claimant if:

• You are claiming Universal Credit as a student who has taken time out from your course. You will have to talk to your work coach to find out.

Examples

Marta

Marta is a single mother to a 10 year old. Marta is doing a full time degree-level course but could not get a maintenance loan because this is her second degree. Marta will be expected to agree to a full claimant commitment and if her course means this is impossible to do, she won’t be able to get Universal Credit.

Alec

Alec is a single father to a six-month old. He is also doing a full time degree-level course and also didn’t qualify for a maintenance loan. However, because his son is under one, Alec has no work related requirements, so he is able to claim Universal Credit.

Grants

There are lots of educational charities listed on our Grants Search that help students, depending on their background, circumstances and needs.

Reviewed: January 2023

Universal Credit is a means-tested benefit. You will have to find out your student income and what is disregarded before you can calculate how much Universal Credit you will get.

You are counted as having student income if you are undertaking a course and have a student loan or grant for your course.

Grants

Grant means an educational grant or award.

If you get a grant but don’t get a loan, the grant income is taken into account for Universal Credit. Except for any grant for:

• Tuition and examination fees
• Disability
• Extra costs of residential study away from your usual place of study during term time
• Costs of your normal home (if you live somewhere else during your course), unless these are met by your Universal Credit
• Maintenance of someone who is not included in your Universal Credit claim
• Books, equipment, course travel costs or childcare costs

If you get a grant and also get a loan and your grant is paid for the same period, it is completely disregarded unless it is for the maintenance of someone who is part of your Universal Credit claim or for rent payments that are met by Universal Credit.

Examples of disregarded grants - Disabled Students’ Allowance, Parents’ Learning Allowance and Special Support Grant. If you are planning to or have received another type of grant, you will need to check the above list to find out if it will be disregarded.

Charitable grants

If you are receiving regular payments of a grant, it will not be counted as income and will not reduce your means-tested benefits.

If you receive one off payment of a grant, it will count as capital rather than income. Having capital may affect your means-tested benefits. 

You can use our Grants Search to find out about educational charities and what help they give students, depending on their background, circumstances and needs.

If you’re not sure how a charitable grant may affect your benefits, you should get advice. You can use the Find an Adviser tool.

Student loans

Student loans for maintenance count as income. If you could get a student loan for maintenance but do not claim it, your Universal Credit will be calculated as if you had been given the loan.

Universal Credit includes amounts for

• Basic expenses
• Housing costs
• Children
• Disabilities

Universal Credit will be calculated based on your income. This will include your income from student loans for maintenance and student grants.

Student income and Universal Credit

The following steps can help you to calculate:

Step 1 – Work out your total student income and take out disregarded grants. 

Step 2 – Your student loan for maintenance should be averaged out across the academic year. Work out how many months this will cover during the year of study.

Step 3 – Divide the amount of Step 1 by the amount from Step 2

Step 4 – Take out £110 from the amount in Step 3 and you can find out how much will be deducted for your student income when calculating your Universal Credit.

Students don’t get any work allowance before student income is deducted from Universal Credit.

Example

Katie gets a student loan of £10,800 in total. She has a 3-year-old child and gets Special Support Grant of £3,900. Year one of her course starts from 21 September 2020 to 17 May 2021. Her Universal Credit assessment periods run from 20th of the month to the 19th of the following month. 

Step 1: £10,800 - £3,900 = £6,900 (Her Special Support Grant is not counted as income for Universal Credit (see Student Income). 

Step 2: Katie's student loan counts as income for seven assessment periods.

Step 3: £6,900 ÷ 7 = £985.71

Step 4: £985.71 - £110 = £857.71 

Katie's Universal Credit will be calculated based on income of £875.71 a month from 20 September to 19 April 2021. 

Post-graduate income and Universal Credit

Universal Credit will be calculated based on 30% of the maximum postgraduate or postdoctoral loan.

If you fail to apply for the maximum postgraduate loan you’re entitled to, it will usually be treated as if you get the loan and your Universal Credit will be calculated on that amount.

The following steps can help you to calculate:

Step 1 – Calculate the 30% of the postgraduate loan.

Step 2 – Your postgraduate loan should be averaged out across the academic year. Work out how many months this will cover during the year of study.

Step 3 – Divide the amount of Step 1 by the amount from Step 2.

Students don’t get any work allowance before student income is deducted from Universal Credit.

Example

Hassan gets Universal Credit and his full-time postgraduate master’s degree starts on 12 September 2019. His Universal Credit assessment periods run from 8 September 2019 to 7 May 2020. The course will last for one year and he gets a postgraduate master’s degree loan of £10,000.

Step 1: £10,000 - £7,000 = £3,000.

Step 2: Hassan’s loan counts as income for seven assessment period.

Step 3: £3,000 ÷ 7 = £428.6

Hassan’s Universal Credit will be calculated based on income of £428.6 a month from 8 September 2019 to April 2020.

The Department for Work and Pensions (DWP) will not usually give detailed information on how your student income has been calculated, and this is a complicated area where the DWP makes mistakes. If you are getting student income and Universal Credit, it would be a good idea to get help from an adviser to see how much should be deducted from your Universal Credit.

Updated: January 2023

Most people cannot make new claims for Income-based Jobseeker's Allowance (JSA) or Income Support. If you already have a claim for one of these benefits, it is possible you might be able to continue getting it while you study.

Jobseeker’s Allowance (JSA)

Even if you are unemployed and looking for work, you will not be entitled to Jobseeker's Allowance (JSA) (income-related or contributory) if you are a full-time student.

The exception to this is;

• If you are a lone parent
• If you are attending a Department for Work and Pensions (DWP) related course or scheme for a limited period (seek specialist advice in this case)

You may also be able to get JSA for a limited period after taking time out from study.

If you receive student support in the form of a grant or loan, this will probably reduce the amount of income-based JSA you can get.

Income Support

Most full-time students are not entitled to Income Support. However, you may be entitled to this benefit as a full-time student if you are:

• A lone parent with a child under five

• A lone foster parent of a child under 16

• A refugee who is learning English to obtain employment

• Under 21 or reached 21 whilst enrolled on or accepted on a full-time non-advanced course and you are without parental support.

If you receive student support in the form of a grant or loan, this will probably reduce the amount of Income Support you can get.
 

Reviewed: January 2023

Contributory Employment and Support Allowance (ESA)

If you are not able to work due to illness or disability, you may be entitled to contributory ESA while you are a full-time student if you have previously worked and paid national insurance contributions.

Income-related Employment and Support Allowance (ESA)

It is no longer possible to make new claims for income-related ESA. Income-related ESA has been replaced for new claimants by Universal Credit.

If you are getting income-related ESA and you are also getting Disability Living Allowance (DLA) or Personal Independence Payment (PIP) or Adult Disability Payment (ADP) or Armed Forces Independence Payment (AFIP), you will be able to continue getting income-related ESA once you start studying.

If you are a full time student who is getting DLA, PIP, ADP or AFIP, you count as having limited capability for work without having to have a Work Capability Assessment.

If you receive student support in the form of a grant or a loan, this will probably reduce the amount of income-related ESA you can get.

Reviewed: January 2023

Most people cannot make new claims for Housing Benefit. If you already have a claim for Housing Benefit, it is possible you might be able to continue getting it while you study. Otherwise, any help with housing costs will be paid through Universal Credit and you will have to satisfy the eligibility tests for Universal Credit.

Housing Benefit

If you are a full-time student who is already getting Housing Benefit, you can continue to get Housing Benefit as a student if you meet one of the following conditions (these conditions also apply if you are a full-time student who falls into one of the groups who can still make new claims for Housing Benefit):

• You receive Income Support (IS) or income-based Jobseeker’s Allowance (JSA) or income-related Employment and Support Allowance (ESA)

• You are a lone parent or a member of a couple who are responsible for a child and you are both full-time students 

• You are a lone foster carer with a child formally placed with you by a local authority or voluntary agency

• You receive Disability Living Allowance (DLA), Personal Independence Payment (PIP), Adult Disability Payment Scotland or Attendance Allowance, the disability or severe disability element of Working Tax Credit or a War Pensioner’s Disability Supplement

• You or your partner are registered blind

• You have been unable to work due to sickness or disability for at least 28 weeks

• You qualify for a Disabled Student’s Allowance because you are deaf

• You take time out from your course because of illness or caring responsibilities in certain circumstances (see Time out from study within this guide)

• You are under 21 on a non-advanced course - age can sometimes be extended to 22

• You are over 66 and neither you nor your partner are getting Income Support, income-based Jobseeker’s Allowance (JSA) or income-related Employment and Support Allowance (ESA). If you qualify for guaranteed Pension Credit, you will receive maximum entitlement to Housing Benefit.

If you are under 66 and receive student support, in the form of a grant or loan, this will usually reduce the amount of Housing Benefit you can get. Unless you also get Income Support, income-based Jobseeker’s Allowance (JSA) or income-related Employment and Support Allowance (ESA), in which case you will automatically receive your maximum entitlement to Housing Benefit.

Reviewed: January 2023
 

Personal Independence Payment (PIP), Adult Disability Payment Scotland, Child Disability Payment Scotland and Attendance Allowance

You can get PIP, Adult Disability Payment Scotland, Child Disability Payment Scotland or Attendance Allowance even if you are a full-time student.

If you are disabled, are aged under Pension age and need help with your personal care or mobility needs, you can get Personal Independence Payment (PIP) if you live in England, Wales or Northern Ireland, or Adult Disability Payment if you live in Scotland. If you need help with personal care and are Pension age or over, you can get Attendance Allowance.

PIP and Attendance Allowance are not means-tested. This means any income (including student grants or loans) or savings you have are ignored.

If activities you do as part of your course suggest that your health has improved, your PIP, Adult Disability Payment or Attendance Allowance may stop. For example, if you are getting PIP because you said you have problems with walking and your course involves a lot of physical activity, this could cause your award to be reviewed.

Disability Living Allowance (DLA)

You cannot make a new claim for DLA but if you are already claiming it, you can continue to get it when you become a full-time student, as long as you still meet the criteria.

If you are still getting DLA, you will be reassessed for Personal Independence Payment (PIP) at some point.

See When will I move from Disability Living Allowance (DLA) to Personal Independence Payment (PIP)

If activities you do as part of your course suggest that your health has improved, you could lose your benefit. For example, if you are getting DLA because you said you have problems with walking and your course involves a lot of physical activity, this could cause your claim to be reviewed.

Reviewed: January 2023

Most full time students do not have to pay Council Tax if everyone in the property is a full-time student.

If you live with one other person who is not a student, they might be able to get a discount on the Council Tax.

If you are a full-time student and are being charged Council Tax, you should get support from your university/college or you should find an adviser.

Reviewed: January 2023
 

Carer’s Allowance

You cannot get Carer’s Allowance if you are in full-time education, even during holidays. For Carer’s Allowance, full time usually means a course at any level that the school, college or university says is full time.

Child Benefit

If you are responsible for a child, as a full-time student you can still claim Child Benefit.

Pension Credit

If you are a full-time student who is over 66 and you have a low income, you may be able to get Pension Credit.

If you get Pension Credit (Guarantee credit), you will automatically receive your maximum entitlement to Housing Benefit and Council Tax Support.

Tax Credits

It is no longer possible to make new claims for tax credits. If you are already getting tax credits, you may be able to carry on receiving them. Otherwise, you will need to make a claim for Universal Credit.

You can get tax credits even if you are a full-time student.

If you or your partner are working and have a fairly low income, you may get Working Tax Credit. However, in some cases you need to be aged 25 or over. How many hours you need to work will depend on your circumstances.

If you are responsible for children as a lone parent or as a member of a couple, you may get Child Tax Credit.

See the Working Tax Credit and Child Tax Credit information guides for full details about who can claim.

Most student support income is ignored but some additional payments may count as income.

Reviewed: January 2023

If you are a full-time student, whether you can get benefits during time out from study depends on the reason for taking time out and the benefit concerned.

You can continue to get Universal Credit, Income Support, income-based Jobseeker's Allowance (JSA) or income-related Employment and Support Allowance (ESA) during your time out from study if you are a student who can get these benefits while studying.

Illness or caring responsibilities

If you are a full-time student and you need to take time out, for example due to illness or because you need to care for someone temporarily, you still count as a full-time student. You will therefore only qualify for the benefits you could get while studying.

If you aren't eligible for a student grant or loan, you may be entitled to Universal Credit, Jobseeker's Allowance, Housing Benefit or Council Tax Support for up to a year once your illness or caring responsibilities have come to an end. This is while you are waiting to rejoin the course (for example, until the start of the next academic term).

You may be treated as having student support income, such as student loans or grants during this period. 

Pregnancy

If you are a full-time student and you take time out from your studies because you are pregnant, you will not be able to get most means-tested benefits, unless you are a student who can qualify for these benefits while studying.

Once the baby is born, you may then be able to get

• Universal Credit
• Income Support if you are a lone parent
• Housing Benefit and Council Tax Support (if you are a lone parent or a member of a couple who are responsible for a child and are both full-time students)
• Maternity Allowance or Statutory Maternity Pay if you have been working.

Other reasons

If you are a full-time student and are taking time out from your studies for other reasons, such as to resit exams, you will still be treated as a full-time student and will not be able to claim means-tested benefits, unless you are a student who can get these benefits while studying.

Reviewed: November 2021

Students and benefits is a complex area. Advice should always be sought from an experienced specialist adviser or student service.

You can seek advice in your local area by using our Find an Adviser tool and you can also obtain assistance from the organisations listed below.

Student Advice Services/ Welfare Office at Colleges/Universities

Most universities and colleges will have a student advice/welfare service.  The university offices normally provide advice on a range of issues including housing, benefits and student financial support. Students may also be able to access 'Hardship Payments' through student support offices. Services offered by colleges maybe more limited.

Disabled Students Helpline

Disability Rights UK run a free specialist helpline to advise and support disabled people aged over 16 in England, who are studying or wish to study full-time or part-time.

Tel: 0330 995 0414 (Tues and Thurs 11.00 – 13.00) Email: students@disabilityrightsuk.org

General information is also provided to disabled students in Scotland and Wales.

Lead Scotland provide a helpline for disabled students in Scotland. Tel: 0800 999 2568 email: info@lead.org.uk

Gov.UK website - Student Finance

Detailed information on financial support for students can be accessed from the Gov.UK website.

National Apprenticeship Helpline

The helpline provides  guidance on accessing apprenticeships and related issues. You can obtain further information from the Gov.UK website

Tel: 0800 015 0400 or 0247 682 6482 Email: nationalhelpdesk@apprenticeships.gov.uk

Reviewed: November 2021