Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to help ensure that students with long-term health conditions are able to access the financial support to which they are entitled; and if he will make an assessment of the potential impact of deducting loans that cover maintenance from Universal Credit on the income of affected students.

Students, including disabled students and those with health conditions, access fees and living costs support for their higher education courses through various loans and grants funded through the student support system. It is important that UC does not duplicate this support, which is designed for the needs of students unlike the social security system. This includes support which recognises a person’s disability, such as the Disabled Students Allowance for those in higher education and discretionary bursaries and grants if undertaking further education. Disabled students also have access to discretionary Hardship Funds which are made available by universities and colleges.

It is important that Universal Credit does not duplicate this support. A condition of entitlement for Universal Credit is that the claimant must not be in education, which excludes most students. There is an exception where a person has already been determined to have limited capability for work before entering education and is entitled to a qualifying disability benefit, such as Personal Independence Payment. The rules for this exception are designed to encourage those already claiming Universal Credit because of disability or ill health to take up education that may help them into work in the future.

Treatment of student income under Universal Credit broadly mirrors that in income related Employment and Support Allowance, Housing Benefit, Income Support and income-based Jobseekers Allowance which safeguards fairness whilst also ensuring simplification of the benefit system. If an eligible student makes a claim to Universal Credit we take into account, as income, any financial support which provides for the student's basic maintenance, such as student maintenance loans and grants. We do not take into account student income which covers additional costs, such as loans for tuition fees and books. The first £110 of any student maintenance loan or grant paid to meet living costs is not taken into account in each monthly Assessment Period where benefits are calculated. Over a typical 9 or 10 month academic year claimants are able to keep between £990-£1100 more of their Universal Credit award. The intention behind this is to help students with any added costs of books, equipment and travel which may be incurred whilst studying or training.

Whilst it is acknowledged that maintenance loans are to be paid back, if they were not treated as income and were ignored this would result in Universal Credit (and most legacy benefits) duplicating support already provided through the student finance system.