Depending on your individual circumstances, you may be entitled to claim some financial support while studying through welfare benefits. Your eligibility for welfare benefits depends on several factors and can include whether you are studying part-time or full-time, if you have a disability or long-term illness, or if you are a carer.
Below outlines the main categories for benefits in the UK and the types of benefits that are included within these categories.
If you think you may eligible to receive benefits, it's important to speak to a specialist benefits advisor who can support you in checking if you are eligible. The below information is based on guidance for the 2024/2025 academic year.
Non Means-Tested Benefits:
Non Means-tested benefits can be either Contributory or Non-contributory
Contributory benefits e.g. contributory Employment and Support Allowance
To claim contributory benefits, you must have paid National Insurance contributions while working to claim these. They are also called ‘earnings replacement benefits’ because they are paid when, for various reasons, the claimant is not working.
Non-contributory benefits e.g. disability benefits
National Insurance contributions are not required to claim these. They include disability benefits such as Personal Independence Payment, and Carer’s Allowance.
Means-Tested Benefits:
Entitlement to means-tested benefits is based on a financial assessment, looking at your income and capital (e.g. savings), compared to the amount of money the law says you need to live on. Most student funding for maintenance costs is counted as income, and so you may get only a reduced amount, or no award. If you live with a partner, they are included in the assessment. A means-tested benefit may ‘top-up’ other income such as earnings or other welfare benefits or may be the only benefit the claimant gets.
Universal Credit is the main means-tested benefit for new claimants (see below). There are several pre-Universal Credit means-tested benefits, and tax credits, (called ‘legacy benefits’) that some people still get, but in most cases new claims cannot be made for these. These benefits include income-related Employment and Support Allowance, Housing Benefit, Income Support and Tax Credits. If you are already getting one of these, you will be notified at some point about when your benefit will be transferred to a Universal Credit claim.
Most welfare benefits are administered by the Department for Work and Pensions. Tax Credits and Child Benefit are the responsibility of HMRC, and Council Tax Support and Housing Benefit are administered by local authorities.
Council Tax: Exemptions and Council Tax Reduction
Council Tax is a tax to help pay for local services such as social care and rubbish collections. You may not have to pay Council Tax while studying. You are exempt from paying it if everyone living in your accommodation is a student, so all halls of residence are exempt. Even if your property isn’t exempt, if you are a full-time student, you are ‘disregarded’, as if you do not live in the property, and should not have to pay towards the bill. If there is a part-time student or a non-student living in the property, they will have to pay Council Tax, but they can apply for a 25% single person discount if everyone else is a full-time student or disregarded for another reason. If you are a part-time student and must pay council tax, you may be able to get a means-tested discount to the bill called Council Tax Reduction.
It’s important to know:
- All UK welfare benefits and concessions have conditions regarding your immigration status, and your history of residence and presence in the UK. These can be complex and vary between benefits, so seek advice if required.
- Your student finance funding will have an impact on whether you can claim some benefits and you should get specialist benefits advice before making a claim.
For more information, help and support:
Entitledto can provide specialist advice, information and a benefits calculator to check your eligibility for welfare benefits.
Citizens Advice can also provide tailored advice and support to apply for benefits.
For free and confidential money advice and support or the chance to speak to someone about improving your financial situation, contact the advice service for an appointment at [email protected]
The above information is for general information purposes and does not constitute financial advice. For tailored benefits advice, students are advised to do their own research, seek independent regulated financial advice and speak to a specialist benefits advisor.