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UC (LCWRA) and Student Finance (Maintenance Loan) - Advice Please!

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2 months 1 week ago #294309 by Kerrence
Hi

My disabled child currently receives both PIP and UC (LCWRA), the latter arranged from late last year to ensure that everything was in place by the time they finished their A Levels. They are now going to University in September and have been awarded the basis (non-income assessed) amount of Maintenance Loan (£4767), which could be paid across the equivalent of 9 UC 'assessment periods' (at c£539 per month). Because they are living on-campus they are not eligible for Housing Benefit or any additional financial support through Disabled Students Allowance (Student Finance England), even though they are in an accessible studio flat because of their disabilities.

My questions are:

How is the deduction from UC payments (because of the Maintenance Loan being treated as 'income') calculated? I can see for other (non-student, and employed) UC claimants that for every £1 they earn, DWP will deduct 55 pence; but can find nothing in relation to full-time students.

Do full-time University Students in receipt of UC (LCWRA) have a 'minimum amount' of UC payment that is protected, before any deductions are made, because they cannot supplement any income because they are unable to undertake paid employment during the lifetime of their award?

Are DWP currently clued-up on how to deal with these changes in circumstances as I have seen numerous instances whereby they have made errors or cancelled all entitlement because of the process not being applied correctly?

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2 months 1 week ago #294323 by David
Hi Kerrence,

To answer your questions.....

"How is the deduction from UC payments (because of the Maintenance Loan being treated as 'income') calculated? I can see for other (non-student, and employed) UC claimants that for every £1 they earn, DWP will deduct 55 pence; but can find nothing in relation to full-time students"
That is not correct. The 55p in the £1 disregard only applies to earned income from employment. It is a complicated area and I suggest you first read this guide.
www.gov.uk/guidance/universal-credit-and...%20summer%20holidays

"Do full-time University Students in receipt of UC (LCWRA) have a 'minimum amount' of UC payment that is protected, before any deductions are made, because they cannot supplement any income because they are unable to undertake paid employment during the lifetime of their award?"
All full time students have £110 disregarded from their income per monthly UC assessment period. Your child will also receive the Special Support Loan or Grant and this is fully disregarded from income.

"Are DWP currently clued-up on how to deal with these changes in circumstances as I have seen numerous instances whereby they have made errors or cancelled all entitlement because of the process not being applied correctly?"
The calculations for university students can be complex and even Benefits Calculators such as Entitledto.co.uk recommend that you take personal advice from a local Benefits advice expert.

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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