Deduction for Postgraduate Income on Universal Credit

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.

How your course is funded

If your course is funded in the same way as an undergraduate with a maintenance loan then please see our other guide.  Scottish students will always be funded in that way.

If your course is in England and funded by Postgraduate Master's Loan orPostgraduate Doctoral Loan then then this guide applies.

If you live in Wales then this guide applies.

Step 1 - Amount of regarded student income

The first step is to work out what is counted as income - ​

70% of your student income is considered to be for tuition fees and is therefore disregarded by Universal Credit.  This applies whether the cost of your tuition is more or less.  You do not need to provide evidence of your course costs.
30% of your student income is considered to be for living costs and will be used in the calculation to decide your deduction on Universal Credit.

If you are eligible to receive to receive student income and do not take all reasonable steps to acquire it, your Universal Credit will still be reduced taking it into account.
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.
5Example - 

Assessment period dates - 17th to 16th of each month
Course dates - 5th September to 4th September

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
  11. 17/6 to 16/7
  12. 17/7 to 16/8
  13. 17/8 to 16/9 - does not count because course ends 4th September

In this example, the person is considered a student for 12 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.

If your figure is negative then no deduction will be taken.

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?

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.