Students and benefits
Types of benefits
This section provides a general overview of the benefits available to students. Benefits are affected by study in different ways. The table below shows both benefits that are affected and those that remain the same.
Click on the benefit to find out more
|
Affected Benefits |
Unaffected Benefits |
|---|---|
| Child Tax Credits (CTC) |
Council Tax Benefit
- All full-time students (including international and intermitting students) are EXEMPT from paying Council Tax.
- If you are claiming benefits you may be eligible to apply for Council Tax Benefit.
- For further information see the Students' Union website on Council Tax liability or check with your local council tax office.
Housing Benefit
(Brighton and Hove tenants please see Local Housing Allowance)
Housing Benefit is paid to people who are on a low income and who pay rent.
- You may apply if you are a single parent
- In addition to the entitlement rules outlined above, you may apply if you and your partner are both full-time students and are responsible for a child. Unlike Income Support and Jobseekers Allowance, this applies throughout the whole year.
- You may apply if you are claiming a disability benefit or in receipt of a disability premium
- You may apply if you are receiving Disabled Students' Allowance for deafness
- You may apply if you have been incapable of work for 28 weeks or more
- The amount you receive will be affected by your student income. See Benefit Calculations for more details.
- If you are claiming a disability benefit and living in university managed or campus accommodation you may be eligible to claim Housing Benefit. Housing Benefit claims can be attached to campus accommodation or university managed accommodation and can be claimed throughout the whole year, and not just during summer vacation.
Local Housing Allowance
The Local Housing Allowance (LHA) replaced Housing Benefit (HB) in the Brighton & Hove area for tenants on a low income living in private rented accommodation.
Entitlement rules to Local Housing Allowance remain the same as Housing Benefit.
- LHA will be based on rent levels for the area in which you live
- It is dependent on how many people live in the property
- As tenants you will receive the maximum LHA you are entitled to as a flat rate. It is up to you to find suitable accommodation within this price.
- If your level of rent is below the LHA awarded you may keep the saving, however if your rent is higher, surplus costs will have to be met through other income.
- Unless you are a vulnerable tenant all payments will be made to you rather than your landlord.
- In term time the rate of allowance will be affected by student income. See Benefit Calculations to calculate projected LHA.
For more information on LHA please see:
Income Support
Is paid to those who are not in full-time work and who are on a low income. If you can continue to claim whilst studying, the amount you receive will be affected by your student income. See Benefit Calculations for more details. The child element of the benefit will be claimed via Child Tax Credits.
In October 2009 only single parents with a child under the age of 10 were able to claim Income Support. In October 2010 this reduced to age 7. If the change affects you, you will be expected to claim Job Seekers Allowance (eligibility allowing).
Transitional rules apply – if you were in receipt of Income Support as a lone parent before 24th November 2008 and were in full time study you will be able to continue to receive Income Support until your youngest child turns 16 or your course ends (whichever is earliest).
Job Seekers Allowance
Is paid to those who are unemployed or who work for less than 16 hours a week and who are actively seeking full-time work.
Eligible students must meet the 'labour market conditions' of being available and actively seeking work so the times when you can claim Jobseekers Allowance are limited but include:
- If you are one of a couple who are both full-time students and responsible for a child you may apply during the summer vacation
- If you are a single parent and no longer eligible for Income Support you may claim over the summer vacation
- If you were absent from your course - intermitting - due to illness or caring responsibilities, you can claim from when the reason for your absence has ceased until the day before you rejoin your course or the start of the next academic year, whichever is the earlier.
Disability Living Allowance
Remains unaffected. Please see Disabled Students' Allowances for information regarding further support.
Incapacity Benefit
Essentially unaffected although study may trigger a review.
Potential problems may arise when a course includes a compulsory placement year; it may be hard to justify incapacity for work.
Employment Support Allowance
Employment Support Allowance (ESA) replaces Incapacity benefit and income support on disability grounds from 27 October 2008.
You can apply for contributory ESA if you have paid enough National Insurance (NI) contributions.
If you do not have enough NI contributions you may claim Income Related ESA, to claim this, full time students must be in receipt of Disability Living Allowance (DLA).
Part time students may claim both types of ESA – you can claim Income related ESA if you satisfy the means test, there is no requirement to be receipt of DLA.
Please note the conditions attached to ESA could interfere with the ability to attend a full time course – ie requirement to engage in work related activity. Please discuss with your Personal Advisor for further details/
Carers Allowance
Generally unaffected unless course involves more than 21 hrs/wk supervised study (includes private study).
Maternity Benefits
You may claim Statutory Maternity Pay if you are in continuous employment with the same employer for 26 weeks or Maternity Allowance if in employment for 26 weeks but not with the same employer (National Insurance contributions allowing).
You may be eligible for a £500 Sure Start Maternity Grant - contact the Department of Work and Pensions for more information.
Tax Credits
Tax Credits are made up of Child Tax Credit, Working Tax Credit plus Child Care Element.
Child Tax Credit (CTC)
CTC is a means–tested credit for families who are responsible for at least one child regardless of whether or not you are in work. It replaces the child elements of Income Support and Job Seekers Allowance.
Working Tax Credit (WTC)
WTC is a means-tested benefit for working people on low incomes who usually work 16 hours or more a week (if you have children) or 30 hours or more a week (if you don’t have children). It replaces Working Families Tax Credit and Disabled Persons Tax Credit.
Child Care Element (CCE)
As part of Working Tax Credit you may qualify for extra help towards the cost of child care. Couples can apply if:
- both work 16 hours or more, or
- one of you works 16 hours or more per week and the other has a disability.
Lone parents may find they get a larger award by applying to the Local Authority Childcare Grant, please see the government information: Extra help for students with children.
Claims
Claims are processed online through the Inland Revenue www.inlandrevenue.gov.uk/taxcredits or tel 0845 300 3900 (textphone 0845 300 3909) for England, Scotland and Wales, or 0845 603 2000 (textphone 0845 607 6078) for Northern Ireland.
They are calculated on an annual April to April cycle and entitlement is based on gross income for the previous tax year. Student support, excluding Dependents Allowance and Lone Parents Grant is disregarded as income for tax credit calculations. Please check the Inland Revenue website to calculate your entitlement.
CTC and CCE are paid to the main carer directly into a bank account and WTC is paid to the person in work by the employer through the payroll.
Change in circumstances
If your income rises or falls during the year, you can choose to have your awards changed. There is no obligation to notify changes until the year-end, but there may be an under- or over-payment of tax credits if you don't.
If your income rises by more that £2,500 in the current year, your tax credits will be affected.
However there are certain changes which the Inland Revenue must be notified about. These include:
- leaving work
- changes in household composition (e.g. a child over 16 leaving school)
- becoming or ceasing to be a lone parent
- changes in the use of eligible childcare. This means that tax credits can respond quickly if your childcare costs increase.
