Welfare benefits are normally claimed by people who are looking for work, or who have limited work capability because of ill health or disability or who are parents. The following information is for postgraduate UK based students.
International Students: You cannot claim most welfare benefits if you have student or visitor permission (or you have any other immigration permission with the condition stating ‘No recourse to public funds’ or 'No access to public funds'). Claiming is a breach of the Immigration conditions and is a criminal offence. This can affect your current visa and any future immigration application for the UK. UKCISA provide information for international students about Welfare benefits.
Most full-time postgraduate students cannot claim welfare benefits during their course such as Universal Credit or the old-style benefits that Universal Credit replaced such as Income Support or Housing Benefit. You are required to inform the relevant benefit departments of your change in circumstance. Unless you belong to one of the excepted groups below who can continue to claim while they study, your benefit entitlement will end once you become a full-time student. Once you become a student, it is important to inform the relevant benefit office of your change in circumstances so your entitlement and eligibility can be re-assessed. This will help avoid an overpayment of benefit.
You may be able to continue to receive benefits while you study if you fall within the excepted group of students providing you also meet the general eligibility rules for each welfare benefit.
Excepted groups:
If you are a parent and already receive Tax Credits you should seek advice before claiming Universal Credits. A claim for Universal Credit will end your Tax Credits claim permanently and you will not be able to reclaim. This can sometimes leave claimants worse off.
Students who receive Contributory Employment Support Allowance may be able to continue their claim although a change in circumstances, such as becoming a student, could lead to a re-assessment of their work capabilities. This benefit can also be time limited so you may find it helpful to discuss your circumstances with a Welfare Adviser before you start your course.
If you are eligible to claim any income-based welfare benefits such as Universal Credit, your student income will reduce the amount of benefit payable. A later section below explains how postgraduate student income affects Welfare Benefits.
If you are unsure about your eligibility to claim welfare benefits, contact a Welfare Adviser to discuss this.
There are no specific rules that exclude students registered on a part-time course from claiming welfare benefits although students must meet the general eligibility rules for each Welfare Benefit.
If you are due to start a part-time postgraduate course and are already claiming welfare benefits you must continue to satisfy the claim requirements for your claim to continue.
Universal Credit: Universal Credit can help top-up a low income so even if you work, you may be eligible for some support. It is assessed on your income or your partners income if you live together. If you make a claim during your course, you will be expected to meet any work related activities and requirements that are listed in your Universal Credit claimant commitment, such as job activities and being available for work. If you expect your studies will affect your ability to meet these requirements you should discuss this with your Work Coach before you agree to the terms or, if these are already agreed, ask if any adjustments can be made. However, if adjustments are not agreed and your Work Coach determines that your study means that you are unable to meet the requirements in your claimant commitment, your claim for Universal Credit could cease or sanctions could be applied which reduce the amount of Universal Credit payable. Further information about claimant commitments and sanctions can be found on the Understanding Universal Credit site.
If you are recently unemployed and you have been working and paid sufficient National Insurance (NI) contributions in the two full tax years before the year you’re claiming in, you may also be eligible for New-Style JSA or, if you have a disability or health condition that limits your ability to work New Style ESA. These benefits are based on National Insurance Contributions and are not assessed against income so should not be affected by student income.
It is important to be aware how any student income can reduce income-based Welfare Benefits. This is explained in more detail in the section below about student income and affect on benefit entitlement.
If you are eligible for and claim welfare benefits, you are required to tell each of the benefit offices that pay your benefit(s) about your change in circumstances and your change in income. This includes any income you get for your studies e.g., the Postgraduate Loan, bank loans, earnings, university scholarships or stipends. How much benefit you get will depend on what income is used in the income assessment.
Postgraduate students in receipt of a grant e.g., a scholarship or stipend or a loan (except for a UK government Master's or Doctoral Loan - see next paragraph) will have any amount that is specifically paid for tuition fees ignored as income in the assessment of any income assessed welfare benefits. However, any amount of grant or loan paid for living costs may be treated as income. If you receive old style benefits such as Housing Benefit or Income Support, a fixed amount for books and equipment should also be ignored.
The Student Finance England Master's Loan and Doctoral Loan are both treated as a contribution towards costs rather than a loan exclusively for tuition fees or living costs and 30% of the maximum Master's or Doctoral Loan is taken into account as income for when assessing entitlement to a means-tested benefits and this will reduce the amount payable. This is still used as income if you are eligible for a Postgraduate loans even if you choose not to take out these loans.
If you are a parent or have a disability or ongoing health condition, you may also find it useful to read our information for students with children and for disability and ill health for more information as these include information about how student income is used for benefit assessments.
Contact a Welfare Adviser if you are unsure of your benefit entitlement.