1. UNIVERSAL CREDIT AND BENEFITS UPDATE SFC Student Support Seminar 2016 TUTORAngela Toal DATE8/6/16

2. Aim is to improve work incentives and simplify system Means-tested benefit for people in or out of work (no hours rules) UNIVERSAL CREDIT OVERVIEW

3. UNIVERSAL CREDIT – OVERVIEW Means-tested support for adults, children and housing costs Abolition of hours rules for work Must usually be at least 18 Cannot usually claim if in education Increased conditionality – ‘claimant commitment’

4. MAXIMUM UC Standard allowance (single or couple rate) + Child element/s + Element for caring, or illness/disability + Housing costs element (rent or mortgage interest) + Eligible childcare costs

5. EXAMPLE UC CALCULATION Lone parent over 25 with one child No other income apart from child benefit. No savings. No health problems or disability. Eligible rent £630 per month. Maximum UC Standard allowance£317.82 Child element£277.08 Housing costs£630 Total£1224.90 No other income (child benefit disregarded) so this is monthly amount of UC payable

6. UC ROLLOUT SO FAR ‘Gateway’ – only claim UC if meet all conditions below 18 –> 60 years and six months Single, no children (except Inverness) UK national Not home-owner or homeless Not pregnant, ill/disabled, carer Not in education, not starting education in next month Not getting most other benefits Low or no earnings Full service areas Cannot make new claim for income-based JSA, income- related ESA, income support, housing benefit, WTC or CTC Have to claim UC instead Can stay on existing benefits if no need for new claim

7. UNIVERSAL CREDIT NUMBERS The government expect 7 million people to be on UC by 2021. How many people are actually on universal credit now? 2.5 million 225,000 25,000 25

8. WHICH STUDENTS CAN CLAIM UC? responsible for a child single foster parent, or student couple and one is a foster parent ill/disabled and get DLA/PIP (and must pass medical test) under 21 in FE and ‘without parental support’ over pension credit qualifying age (63 years) student couple and one (or both) in one of above groups partner not a student

9. WORK-RELATED REQUIREMENTS (WRRS) No WRRs if student and – Under 21 in FE and without parental support, or – Student who can claim UC eg, parent, disabled, AND have a student loan or grant for maintenance which counts as income for UC No WRRs if – Child under one – Severely disabled (‘limited capability for work-related activity’) –...some others Work-focused interviews (WFIs) only if – Child aged 1 or 2 Work preparation and WFIs if – Child aged 3 or 4 – Disabled (‘limited capability for work’) 9

10. UC AMOUNTS AND ASSESSMENT PERIODS Assessment period (AP) is from when entitlement starts (usually 7 days after date of claim) for period of a month, and each subsequent month Eg, claim 8 June, entitled from 15 June, AP is 15 th – 14 th of next month Payment is usually 7 days after AP ends eg, 21 July Assessed over previous month Change of circs in month backdated to start of month eg, – Finish course – FE bursary ignored for whole month – No longer entitled – nothing for whole month 10

11. UC - TREATMENT OF STUDENT INCOME Take into account FE bursary Ignore any grants for – tuition fees/exams – disability – books and equipment – course travel costs – childcare costs Ignore EMA In HE take into account maximum student loan, ignoring any reduction due to a grant being paid or household income Student income taken into account from AP in which course starts to AP before it ends or before summer vacation Ignore £110 per month

12. CASE STUDIES – UC AND STUDENTS 1) Graham is 19 and is on UC. He starts a full-time FE course. He is estranged from his parents, and rent a room in a flat. 2) John gets UC and is 24. He becomes disabled and is awarded PIP. He starts a full-time FE course. – Can Graham and John stay on UC when studying? – Do Graham and John have to look for work while studying? 3) Amber is 30 and is on a full-time FE course. She is a lone parent with a 5 year old child. She gets CTC, child benefit and housing benefit. She lives in Musselburgh. – Can she claim JSA when her course ends? – She applies to do another FE course in the autumn. What happens to her benefits now?

13. REMINDER: HB FOR STUDENTS Part-time HB for full-time student if you are: Under 21 in FE (or turn 21 on course) Disabled student Lone parent (with child that get child benefit for) Couple, both students and have child Non-student partner of a student Age 63 or over Can claim HB

14. HB FOR DISABLED STUDENTS Several routes eg, linked to level of DLA/PIP you get One is the 28 weeks route – if have LCW and have had LCW for at least 28 weeks Requires a claim for ESA (unless already get credits for LCW), even if not going to be eligible for any eg, because no DLA/PIP 14

15. CLAIMING BENEFIT AT END OF COURSE Claim from the day after course ends – no longer a student so no restrictions on entitlement Claim UC if in East Lothian Claim UC if elsewhere and a single jobseeker Inverness claim UC if 29 June or later; or if before then and jobseeker and single or couple or have children Otherwise, claim usual benefits eg – JSA for most people – IS if lone parent with child under 5 – ESA if ill/disabled

16. WELFARE REFORM UPDATE Freezing of benefit and tax credit rates Housing benefit backdating limited to 1 month April 2016 Help with rent restricted for 18 to 21-year-olds April 2017 Lone parents to have to look for work when youngest turns 3; prepare for work when youngest turns 2 UC work allowances cut April 2016 Benefit cap reducing Autumn 2016 Money for first 2 children only from 2017 (in CTC/UC) 16

17. CPAG IN SCOTLAND Benefits for Students in Scotland Handbook 2015/16 edn - order from www.cpag.org.uk or read online http://www.onlinepublications.cpag.org.uk/www.cpag.org.uk http://www.onlinepublications.cpag.org.uk/ Advice line for advisers Tel. 0141 552 0552 (Mon – Thu 10am – 4pm; Fri 10am –12) Email advice@cpagscotland.org.ukadvice@cpagscotland.org.uk Project information/factsheets to download http://www.cpag.org.uk/scotland/students-and-benefits-project