Students and Universal Credit

The different statutory funding streams for nursing students across the four UK countries is a combination of:

• Loans
• Grants
• Bursaries
• and Hardship Funds.

Different funding sources are treated differently for benefits purposes. The complexity of the funding arrangements means that Department for Work and Pension (DWP) do not always get the calculations for Universal Credit (UC) correct.

This guide will help you to understand how your student income should be treated if you are in one of the categories of students who can also claim Universal Credit whilst studying. It will also explain what to do if you then believe the calculation of your Universal Credit is incorrect.

If you are unsure if you can claim benefits whilst studying, first check the information in the RCN’s Student Money Guide

Student Income and calculating Universal Credit

If you have student income, some of it is ignored and some of it will count as income for Universal Credit (UC). We have broken this guide down into the four UK countries so that you can easily see how this funding affects your benefit calculation.

Some students get funding from one country, but study in another. If this is the case, then use the part of the guide for the country that provides your funding.

For all countries, one-off payments from discretionary funds count as capital rather than income. If your household capital is less than £6,000 it will not affect UC.

Please note student income includes student loans, grants and bursaries paid to you because you are studying. Other income, such as part-time earnings will also be taken into account.

Student Maintenance Loans

If you are eligible for a student maintenance loan it counts as income. The maximum loan you could be entitled to is taken into account, even if you decide not to take out the loan or if it is reduced because of household income.

A dependent’s grant paid as well as your loan for someone included in your Universal Credit claim counts as income, but other grants such as Parent Learners allowance should be disregarded.

Due to the length of the course, most student loans for Nursing students are paid a long course loan for the full 52 weeks of the year (the calculation is different for final year students) If you get the long course loan, your student loan income will be divided by 12 and then a £110 disregard will be applied to the total. If you are a final year student, then the calculation will be until your course end date.

See the case study below for a worked example.

• NHS Learning Support Fund – available to NHS funded students studying in England
• £5000 Training Grant: As this is not paid for a dependant, this should be disregarded
• £2000 Parental Support (formerly child dependants’ allowance): This should be disregarded. (The DWP often include Parental Support Grant as income, but it has been decided at DWP Tribunal that this should also be disregarded, as it is not paid specifically for a dependant.)
• Exceptional Support Fund:  this is a hardship payment and should be treated as capital, not income.

Seeking advice

If you are having problems getting Universal Credit to disregard any part of your NHS Student Support Fund, you can seek assistance from the RCN Welfare Service. Call RCN Direct and ask for a referral to the RCN Welfare Service for specialist benefits advice.

If you are studying in Scotland and are eligible for the Nursing and Midwifery Student Bursary, you will have the following maintenance elements of the Bursary taken into account:

• Non means tested bursary,
• Spouse or Cohabiting Partner Allowance,
• Child Dependent Allowance
• Lone Parents' Grant

All are taken into consideration as income over the 12 months of the course, or your course end date if you are in the final year. The total will be divided by 12 if you are paid annually or until the end of the course if you are in your final year. A £110 disregard will then be applied to the calculated monthly amount.

The following elements of the Bursary should be disregarded in full:

• The Initial Expenses Allowance
• Registered Childcare Costs
• Lone Parent Childcare Grant

The following extra costs should also be disregarded:

• residential study away from your usual place of study during term time 
• travel expenses

There are two statutory funding streams for students studying Nursing and Midwifery in Wales:

• NHS Wales Bursary
• Standard Student package

NHS Wales Bursary

This funding package consists of a loan, grant, and means tested bursary.

Student Maintenance Loan:

If you are eligible for a student maintenance loan it counts as income. The maximum loan you could be entitled to is taken into account, even if you decide not to take out the loan or if it this is reduced because of household income.

A dependent’s grant paid as well as your loan for someone included in your Universal Credit claim counts as income, but other grants such as Parent Learners allowance should be disregarded.

Due to the length of the course, most student loans for nursing students are paid a long course loan for the full 52 weeks of the year. If you get the long course loan, your student loan income will be divided by 12 and then a £110 disregard will be applied to the total. If you are a final year student, then the calculation will be until your course end date.

Payments that should be disregarded:

• Non-Means Tested Grant - As this is not paid for a dependant it should be disregarded
• Means Tested Bursary - As this is not paid for a dependant it should be disregarded
• Parent Learners Allowance - As this is not paid for a dependant it should be disregarded

Standard Student Package

Student Maintenance Loan:

If you are eligible for a student maintenance loan it counts as income. The maximum loan you could be entitled to is taken into account, even if you decide not to take out the loan or if it this is reduced because of household income.

A dependant’s grant paid as well as your loan for someone included in your Universal Credit claim counts as income, but other grants such as Parent Learners allowance should be disregarded.

Due to the length of the course, most student loans for Nursing students are paid a long course loan for the full 52 weeks of the year (the calculation is different for final year students) If you get the long course loan, your student loan income will be divided by 12 and then a £110 disregard will be applied to the total. If you are a final year student, then the calculation will be until your course end date.

HSC Bursary

If you are studying in Northern Ireland and are eligible for the Nursing and Midwifery Student Bursary, you will have maintenance elements of the bursary taken into account:

• Non means tested bursary
• Dependants’ Allowances

Are all taken into consideration as income over the 12 months of the course, or your course end date if you are in the final year.

The following elements of the Bursary should be disregarded:

• Registered Childcare Costs
• Parent Learning Allowance
• Clinical Placement Expenses

Seeking Advice

If you believe the DWP are including any of the incorrect allowance in your calculation, then you will need to make a request on your Universal Credit Journal for a breakdown of how they have calculated your entitlement, and you may need to request a mandatory reconsideration of the entitlement decision.

If you are having problems getting Universal Credit to disregard the correct elements of your NHS Nursing and midwifery Student Bursary, then seek assistance from the RCN Welfare Service – please call RCND and ask for a referral to the RCN Welfare Service for specialist benefits advice.