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Students in Scotland

If you are eligible to claim Universal Credit as a student and your course has a student grant or loan available, these could be counted as income and cause a deduction to your UC payments during the academic year. UC will take into account any regarded student income you are eligible for, whether you choose to apply or accept it.

You can follow our guide here to find out what will be regarded as income by UC and how much you can expect to have deducted during the academic year. This deduction figure is only helpful if you know what you are entitled to from UC before deduction for student income - Calculate your UC payment.

The formula for student income deduction for UC is fairly simple. Amount of regarded student income divided by relevant number of assessment periods and ignore £110. This figure is applied as a deduction to your total UC entitlement £ for £ (it is not treated as earnings).

 

How much will be regarded as income

If you have a maintenance loan available:

Your maintenance loan will regarded as income (usually £6,750 per academic year).

Any grant or bursary intended for the maintenance of someone else on your claim (Dependants' Grant depending on who this is for) will be regarded as income.

Any grant or bursary specifically intended for housing costs that UC also provides housing element for will be regarded as income.
All other grants or bursary will be disregarded.

 

If you do not have a maintenance loan available:

All grants and bursaries will be counted as income, except for any grant or bursary intended for:

  • for tuition or examination fees

  • for disability (DSA)

  • for childcare costs

  • for maintaining a home other than that at which they reside during the course if not met through the housing costs

  • for books and equipment (Initial fees expenses, etc.)

  • for travel expenses incurred for course attendance

  • to meet the needs of another person but not a joint claimant or child dependant

  • for additional expenditure in connection with term time residential study away from the students educational establishment

Number of relevant assessment periods

You will need your official course dates to work out the number of relevant assessment periods that UC will apply a deduction.  You can usually find your official course dates on course provider website, academic planner or by contacting your course provider.

The first deduction will be the assessment period your course starts in.
There will be a deduction for each assessment period throughout your course.

There will not be a deduction for the assessment period the academic year ends in or long vacation starts in (for example, break between 1st and 2nd year).

Example: 

Assessment period 17th to 16th.

Course starts: 28th August.

The first deduction will be for assessment period 17th August to 16th September.

Course ends: 19th May.

There will be no deduction for assessment period 17th May to 16th June.

The last deduction will be for assessment period 17th April to 16th May.

This is 9 relevant assessment periods.

Working out the deduction

Now you have your regarded amount of student income and the relevant number of assessment periods, you can work out the deduction from your UC payment during the academic year.

Total regarded student income divided by number of assessment periods then deduct £110. This figure will be deducted per relevant assessment period, regardless of your student income payment schedule.

 

We have a calculator for you to help with the maths. You can access this calculator by clicking here but we have provided some real life examples with the working out for you.

Example Sophie:

Sophie has a maintenance loan so all grants and bursaries are disregarded unless they are awarded for particular circumstances specified.

Maintenance Loan of £6,750 (always regarded)

Independent Student Bursary £1000 (ignored as this is a grant and there is a Maintenance Loan. This grant is not intended for the maintenance of someone else on the claim and it is not intended for housing costs)

Total regarded student income is £6,750

UC assessment period is 26th to 25th.

Course starts 23rd August.

First deduction is 26th July to 25th August.

Course ends 28th May.

No deduction 26th May to 25th June.

Last deduction is 26th April to 25th May.​

 

1. 26th August to 25th September

2. 26th September to 25th October

3. 26th October to 25th November

4. 26th November to 25th December

5. 26th December to 25th January

6. 26th January to 25th February

7. 26th February to 25th March

8. 26th March to 25th April

9. 26th April to 25th May

£6,750 divided by 9 assessment periods is £750.

£750 - £110 is £640.

A reminder that we have a calculator that does the maths for you. You can access this calculator by clicking here.

Sophie will have £640 deducted per month from assessment period ending 25th September to 25th May.

There will be no deduction for assessment period ending 25th June onwards.

Example John

John has a maintenance loan so all grants and bursaries are disregarded unless they are awarded for particular circumstances specified.

Maintenance Loan of £6,750 (always regarded)

Dependant Allowance £4,197 (regarded because this is a grant paid for the maintenance of his child)

Lone Parent Allowance £2,303 (ignored as this is a grant and there is a Maintenance Loan. This grant is not intended for the maintenance of someone else on the claim and it is not intended for housing costs)

Childcare Allowance £2,456 (always ignored)

Total regarded student income is £6,750 + £4,197 = £10,947.

UC assessment period is 13th to 12th.

Course starts 21st August.

First deduction is 13th August to 12th September.

Course ends 23rd May.

No deduction 13th May to 12th June.

Last deduction is 13th April to 12th May.​

1. 13th August to 12th September

2. 13th September to 12th October

3. 13th October to 12th November

4. 13th November to 12th December

5. 13th December to 12th January

6. 13th January to 12th February

7. 13th February to 12th March

8. 13th March to 12th April

£10,947 divided by 8 assessment periods is £1,368.38

£1,368 - £110 is £1,258.38

A reminder that we have a calculator that does the maths for you. You can access this calculator by clicking here.

John will have £1,258.38 deducted per month from assessment period ending 12th September to 12th April.

There will be no deduction for assessment period ending 12th May onwards.

Example Mary

Mary doesn't have a maintenance loan so all grants and bursaries are regarded unless they are awarded for particular circumstances specified in the list.

Student Nurses Bursary £10,000 (regarded as this is not specified as ignored)

Dependants Allowance £4,197 (regarded as this is not specified as ignored)

Lone Parent Allowance £2,303 (regarded as this is not specified as ignored)

Initial Expenses £60 (ignored as for books and equipment (Initial fees expenses, etc.)

Childcare Allowance £7,001 (always ignored)

Total regarded student income is £10,000 + £4,197 + £2,303 = £16,500.

UC assessment period is 17th to 16th.

Course starts 28th August.

First deduction is 17th August to 16th September.

Course ends 26th August.

No deduction 17th August to 16th September.

Last deduction is 17th July to 16th August.​

1. 17th August to 16th September

2. 17th September to 16th October

3. 17th October to 16th November

4. 17th November to 16th December

5. 17th December to 16th January

6. 17th January to 16th February

7. 17th February to 16th March

8. 17th March to 16th April

9. 17th April to 16th May

10. 17th May to 16th June

11. 17th June to 16th July

12. 17th July to 16th August

£16,500 divided by 12 assessment periods is £1,375

£1,375 - £110 is £1,265

A reminder that we have a calculator that does the maths for you. You can access this calculator by clicking here.

Mary will have £1,265 deducted per month from assessment period ending 16th September to 16th August.

There will be no deduction for assessment period ending 16th September onwards (if she is going back to studying, her new academic year deductions may start then as she has such a short break between years)