Universal credit + student maintenance loan

laurenxs

I currently receive Universal Credit and I am entitled to the highest limited capability element, i also receive PIP. I currently work 12 hours a week, my work is really supportive in terms of my disability as I am limited in what I can do at work. I find working really gives me a sense of purpose so I don't want to quit if I do go to uni. I'll be attending university in September but really confused about how much I'll be getting come September and I want to try plan and budget in advance so I am prepared. I cant tell if my earnings + student finance will completely wipe out my UC amount as theres no simple way of calculating it. I receive around £680 from UC and £400 a month from my part-time job. My work allowance is around £512 a month so anything above that would be taken off my UC but then I read £100 a month of my student finance is disregarded for UC too so what would I actually be left with? Really appreciate any help, thanks in advance

calcotti

A student maintenance loan (after the disregard) is deducted in full (not tapered like your earnings). How much UC you get depends on how much loan you receive. The loan is apportioned across the months of study (typically 9 or 10 I think.) If you will be paying rent and your UC maximum amount then includes the housing element your Work Allowance will reduce to £292.

https://www.entitledto.co.uk/help/Student-income-Universal-Credit
https://www.gov.uk/guidance/universal-credit-and-students
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/907998/admh6.pdf

laurenxs

Thanks for taking the time tk respond! I don't receive the housing element as will be living with my mom (due to both being disabled so we support each other), does this mean my UC amount will be 0? 

laurenxs

I'll be entitled to the full amount so just under £8000, works out at £800 a month while I'm studying so would be greater than my UC amount

calcotti

laurenxs said:

Thanks for taking the time tk respond! I don't receive the housing element as will be living with my mom (due to both being disabled so we support each other), does this mean my UC amount will be 0? 

No that means your maximum UC amount will remain unchanged at about £685 and your Work Allowance will stay at £512.

laurenxs

Sorry, finding it a bit confusing so will my student income be treated like my jobs income and be taken off my UC once it goes over £512? 
So if my maintenance loan + work income was around £1000, would I just have 63% of £488 taken off my UC amount? Or are you saying the student finance wouldn't affect my UC?
Sorry for asking so many questions, just cant seem to get my head round it ?

calcotti

laurenxs said:

I'll be entitled to the full amount so just under £8000, works out at £800 a month while I'm studying so would be greater than my UC amount

If your maximum UC is £687.63 and the student loan is taken into account at more than this then there will be no UC payable in those assessment periods. UC will be payable for the summer break (they may close your claim and you may have to reapply - not sure on that).
The monthly deduction appears to be £110 so if your loan is £7,987 and is taken over 10 months the amount taken into account will be (£7,987/10 - £110 = £688.70/month. It appears therefore that no UC will be payable (and of course the maximum UC amount is set to drop by £86.67 in October).

laurenxs

Or is it that its taken off my UC without being tapered so for example £600 would be taken off £685 as it is student income?
And the work allowance is solely for money i earn?

laurenxs

Ok that makes sense thanks for clearing that up! I'm just really worried about having to reclaim as I really don't want to have to go through the WCA again

calcotti

laurenxs said:

Or is it that its taken off my UC without being tapered so for example £600 would be taken off £685 as it is student income?
And the work allowance is solely for money i earn?

Correct. The taper and the Work Allowance only apply to earnings. (Sorry I was still editing my replies as you were posting.)

calcotti

laurenxs said:

Ok that makes sense thanks for clearing that up! I'm just really worried about having to reclaim as I really don't want to have to go through the WCA again

I don't know what happens to students in this situation, whether the claim can be kept open or not. Normally a UC claim would close if nothing is payable.

Something you may be able to do is ask DWP to credit you with NI credits on the ground of LCWRA even if you will not be receiving benefit. This would mean that if you did have to reapply your LCWRA status should be accepted without a further assessment. It may be worth asking well in advance what you need to do in order to achieve this (again I don't know the answer). If it is a case of reclaiming for the summer months you would unfortunately not be paid the LCWRA element because of the three month waiting period.