Benefits Where Student Support Is Ignored

Benefits Where Student Support Is Ignored

Last updated: Aug17

BENEFIT DISREGARDS

BENEFITS WHERE STUDENT SUPPORT IS IGNORED

Student loans or grants are not taken into account as income for:

  • Contribution based JSA
  • Contribution based ESA
  • Pension Credit
  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Incapacity Benefit
  • Carer’s Allowance
  • Child Benefit

Student income is not taken into account for Housing Benefit or Council Tax Support if you (or your partner) receive:

  • Income Support
  • Income-based JSA
  • Income-related ESA or
  • Are or Pension Credit age.

BENEFITS WHERE STUDENT SUPPORT IS TAKEN INTO ACCOUNT

Student loans or grants are taken into account as income for means-tested benefits, such as:

  • Income Support
  • Income-based JSA
  • Income-related ESA
  • Housing Benefit
  • Council Tax Support

However, even for these benefits, some grant or loan income is ignored, including:

•Fixed amounts for travel costs and books/equipment
•Any allowance for tuition fees
•Disabled Student's Allowance
•An allowance to cover the cost of residential study
•Any amount for childcare costs
•Parent's Learning Allowance
•Higher education grants
•Special Support Grant
•A higher education bursary for care leavers.

DISREGARDS FOR TAX CREDITS

Student loan income is ignored when working out the amount of Child Tax Credit and Working Tax Credit you will get. Some student grant income is ignored for Tax Credits, including:

  • Tuition fees funding
  • Postgraduate maintenance loan
  • Certain bursaries (e.g. Social Work Bursary, Learning Support Fund for NHS students)
  • Childcare grants
  • Parents learning allowance

If you don’t apply for student income, which you could claim, you can still be treated as if you have that money. This is called “notional income.”

STUDENT FINANCE PAYMENT PERIOD

Most student income is averaged out over only the weeks of the year when you are studying (usually 42/43 weeks), but there are exceptions:

Some student income is averaged over the whole year (52 weeks), such as some NHS bursaries (pre Aug 17 intakes) and postgraduate awards. If you are on a “sandwich course” your grant income is normally not taken into account for the periods when you are on the placement. If you stop being a full-time student before the end of your course, your grant or loan income may still be treated as income, until the date your course should have ended or until the date you repay your grant.

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