Universal Credit claims have risen by the highest rate for people living in London’s commuter towns since the coronavirus lockdown began according to new research. Around 5.5 million people are now claiming benefits across Britain which is an increase of 81 percent since March. But for those taking out student loans, can you also get Universal Credit?
What is Universal Credit?
Universal Credit is a payment given to those eligible persons to assist with their living costs.
This payment is only received by those on a low income or out of work.
Universal Credit is a single payment replacing six former benefit payments known as legacy benefits.
These legacy benefits are:
- Income Support
- Working Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit
- Child Tax Credit.
READ MORE: PIP UK: Will claims affect Universal Credit eligibility?
In addition, if you could get a student loan for maintenance but do not claim it, your Universal Credit will be calculated as if you had been given the loan.
Universal Credit is calculated monthly but student loans are paid every term which can make it difficult to calculate how much Universal Credit you should get.
A student loan is generally averaged out across the academic year and £110 per month should be ignored.
If it has not been treated this way or you think your Universal Credit is being calculated wrong, you are advised to seek help from an adviser.
Can you get Universal Credit while taking out a student loan?
You may be entitled to Universal Credit if you receive a student loan.
There are different types of student loans and the rules change based upon the type of loan you receive.
When working out your Universal Credit, any loan amount intended to cover tuition fees and other costs of study will be excluded.
Loans covering maintenance, such as living expenses, rent and bills, will be deducted from your Universal Credit.
Most student loans pay tuition and maintenance in separate payments.
However, those who receive a Special Support Loan or Grant, will not see Universal Credit impacted.
Special Support Loans or Grant is not deducted from Universal Credit payments as it provides help towards costs of study, such as for books, equipment, travel and more.