Deduction for Student Income (with maintenance loan)

Not all students are eligible to claim Universal Credit.  You can find out about eligibility here.

Universal Credit will assess your student income based on any student income you would be entitled to, whether you choose to not to apply or accept it.

Student income will very likely cause a deduction to your Universal Credit.  You can use our step by step guide below to see how much will be deducted.  The same amount will be deducted for each assessment period that you are a student regardless of how your student income payment schedule is set.

You will need your student income award letter with the breakdown of amounts for the academic year and your official course dates.

Step 1 - Amount of regarded student income

The first step is to work out what is counted as income - ​
Maintenance Loan counts as income but any 'special support grant' is disregarded as income.  Special support grant is not always named on your award notice but it may show as The Department of Work and Pensions will disregard £xxxx...

All grants will be disregarded except for -
  • Any grant which intended as the maintenance of another person who is on your Universal Credit claim
  • Any grant which is specified to cover rent payments if that rent is included as housing costs on your Universal Credit claim
Grants which are counted as income (not a complete list)
Child Dependent Allowance (only if you get child element on UC for this child)
Adult Dependent Allowance (only if you this person is on your UC claim for example, a partner)

Grants which are not counted as income (not a complete list)
Tuition Fees
Childcare Grant
Travel Expenses
Parent Learners Allowance
Advanced Learners Loan 
Independents' Student Bursary
Lone Parent Grant
Training Grant (Learning Support Fund)
Parental Support (Learning Support Fund)
WRITE DOWN THE TOTAL REGARDED STUDENT INCOME

Step 2 - Number of assessment periods

You need to look at your official course dates and consider how many Universal Credit assessment periods that you will be a student. 

Universal Credit will make a deduction for student finance in the payments relating to - 
  • the assessment period that the course starts in
  • any assessment period that you are enrolled on the course

They will not include - 
  • any assessment period that summer break starts in or
  • any assessment period that falls completely within summer break. 
The payments relating to those assessment periods will have no deductions for student finance.
Example - 

Assessment period dates - 17th to 16th of each month
Course dates - 6th September to 3rd June

This person will be considered a student for assessment periods as follow - 
  1. 17/8 to 16/9 (course started 6/9)
  2. 17/9 to 16/10
  3. 17/10 to 16/11
  4. 17/11 to 16/12
  5. 17/12 to 16/1
  6. 17/1 to 16/2
  7. 17/2 to 16/3
  8. 17/3 to 16/4
  9. 17/4 to 16/5
  10. 17/5 to 16/6 - does not count because course ends 3rd June

In this example, the person is considered a student for 9 assessment periods.
If you do not know your Universal Credit assessment period or your course dates then it is impossible to accurately calculate your student finance.  

Your Universal Credit assessment period is always one month and starts the day you make your claim and repeats each time.

If you cannot find any course dates on documents, then speak to student services.  You will need to evidence these to Universal Credit.
​
The majority of claimants have student income considered over 8, 9 or 10 assessment periods.
WRITE DOWN THE TOTAL NUMBER OF ASSESSMENT PERIODS

Step 3 - Work out deduction for student income

To work out the deduction for student finance per assesssment period you need to do the following sum on your calculator - 
Total regarded student income divided by number of assessment periods and then minus £110
= deduction for student finance
Everyone benefits from the £110 disregard per assessment period.  It is the amount allocated for expenses.

Step 4 - Calculate your Universal Credit payment

If you are already an existing Universal Credit claimant then you should already be aware of what your full entitlement is before any deductions.  
Student income deduction falls under 'other income' in step 3.

If you have not yet worked out your maximum Universal Credit award you can do this with How Much Will My Payment Be?

When things go wrong with deduction for student income

Often the deduction that Universal Credit staff work out will differ to what it should be.

The first things to check are 
  • Did you evidence the breakdown of your student finance properly so all disregards can be considered?
  • Did you evidence the official course dates?
  • Has Universal Credit disregarded the special support (if applicable)?

Ask you case manager at the service centre how they reached their calculation and if they need to see a breakdown of the student income again.  Suggest to them how you believe it should be calculated and how many assessment periods will be counted.

If there is still disagreement regarding the amount being deducted then ask for it all to be sent to a decision maker.  This may take a few weeks to come back but a decision maker is far more likely to get it correct.