Students and benefits eBulletin - June 2023
In this issue
Universal credit managed migration
This is the process by which those who are on legacy benefits are migrated over to universal credit (UC). The managed migration (re)started on 9/5/22, after pausing due to Covid. Those only on child tax credit and/or working tax credit (WTC) are first to move, and should be migrated in 2023-24. Then those on tax credits together with other legacy benefits are expected to be migrated. Finally, those on income-related ESA only are to be migrated – expected to start in 2028/29.
Managed migration is so far only in several areas in England, but it is expected to extend to Scotland from September 2023.
‘Migration Notices’ are sent out, and advise someone that their legacy benefits are ending, and that they have to make their UC claim by a certain date.
Special rules allow students who are migrated, via this managed migration, to UC, to get UC even if they don’t fit the usual UC rules (to the end of that course). This is in regulation 60 of the Universal Credit (Transitional Provisions) Regulations 2014. For example, a single student in low paid work and on WTC wouldn’t usually get UC, but will get UC for the duration of their course if they are migrated via managed migration to UC while on a course. This protection is lost altogether in certain circumstances eg, if you form a couple or separate.
Benefits for students over the summer vacation
This section explains the rules for students whose course continues after the summer (eg, a 2-year HND, or a degree course). If your course ends completely, see the Students and benefits eBulletin - March 2023.
Students can only claim universal credit (UC) over the summer vacation if they are a student who is in one of the groups of student who are eligible for UC - eg, a parent, someone who lives with a partner who is not a student, certain disabled students, or under 21 in further education and ‘without parental support’ in certain circumstances. For the full list of groups of students who can claim UC, see our Universal credit and students factsheet.
Parent students can normally claim UC over the summer. However, parent students who already get child tax credit or other benefits that are being replaced by UC should get a better-off calculation if they are considering whether to claim UC, as it is not possible to return to these benefits or tax credits once UC has been claimed.
Parent students should also claim Scottish child payment if they have any children under age 16. Check as well whether they are eligible for any Best Start grants or Best Start foods. Someone must be getting UC or certain other benefits to be eligible for these extra payments from Social Security Scotland (although someone can get Best Start grants and foods if they are under 18 even if not on benefits). See Scottish benefits for more details.
Note that student income is not counted as income for UC in the ‘assessment period’ in which a course ends. This means students eligible for UC (eg, student parents) whose UC stopped during term time because their income was too high can reclaim in the last month of their course, when student income is ignored.
Example
Jackie’s summer vacation starts on 16 June 2023. She is a parent with a six-year-old child, but did not get UC during the course year because her student income was too high. She claimed UC on Monday 22 May. She is eligible for UC because she is a parent. Her first UC assessment period runs from 22 May to 21 June. Her student loan is not taken into account as income in this assessment period, as this is the assessment period in which her summer vacation starts. Her first payment is made on 28 June, covering the period 22 May to 21 June, and she receives her maximum UC amount on this date as no student income is counted. Jackie also claims Scottish child payment.
A one-off or lump sum payment from the discretionary fund counts as capital, and as long as total capital (savings, investments, etc) is below £6,000 this will not affect UC.
Someone is still a student for council tax purposes over the summer, therefore a student exemption can continue over the summer.