Postgraduate loan, UC, and student income deductions

Grizzy77

Hello everyone,
I started claiming universal credit with my husband just after finishing the 1st year of an MA with the Open University for which I have been getting a postgraduate loan ( £5785 for each of the 2 years). I am classed as having LCWRA. My 1st year was from February to October 2022. I got my first UC payment in November 2022 and £144.62 was deducted for "student income". However, at that time I was on a break between my 2 years, so should have had the full amount of UC. They carried on deducting the same amount amount every month even though I didn't start my 2nd year until February 2023. Also, according to the info I found on the website Universal credit essentials (https://www.uceplus.co.uk/england), the amount that has been deducted every month is wrong. For a postgrad loan, only 30% is taken into consideration as income. So £1735.5 per year. Only the student income for my 2nd year should have been deducted, so 1735.5 divided by 12 months= 144.62. According to UC essentials, £110 is then substracted to the amount, so 114.62-110=34.62. So I should have had £34.62 deducted for 12 months.
Am I correct or am I misunderstanding the information? Are other people in this situation?

Biblioklept

It sounds like your student dates were wrong with them. Did your course definitely only run from Feb to Oct 2022? When did you first apply for UC? Was it after your course ended?
Also is the second year definitely 12 months? Otherwise your calculation is wrong @Grizzy77

Grizzy77

Hi Biblioklept,
my first year ran from Feb to Oct 2022. I started my UC claim in October 2022 and got the first payment in November 2022 (and the first deduction). My second year ran from Feb to Oct 2023. I thought I had to count 12 months for an academic year, but maybe not?

Biblioklept

Oh yeah I was reading the undergraduate, sorry!!!  Postgraduate is done by 12 months regardless of term dates. They definitely are meant to do 30% of loan, divided by 12 and then deduct £110, so have taken much more from you than they're meant to!!

UC work out student deduction payments manually so wouldn't surprise me if they get most of them wrong tbh!!!

Have you asked the people that wrote that website?? They are amaaaazing and helped me so much when my UC claim got messed up and sorted it all for me  

Grizzy77

Yes, I think I am going to ask them next. Thank you so much for your reply Biblioklept.

Biblioklept

They're a great little charity and are on FB too but I definitely agree with your understanding of it and I looked at the adm legislation guide and it says the same so they've definitely taken more from you than they should have!!!