In March the blogger at Levitate Student talked about the sometimes very odd rules around student finance. This month she returns with a look at some benefit oddities that trip students up.
When is paying rent just an illusion?
When you are a student of course……
Most full-time Higher Education students are not entitled to claim housing benefit. This may seem strange when for many students their income is certainly low enough to render them eligible.
The law gets around the problem by defining who is regarded as “liable to make payments in respect of a dwelling” for the purposes of housing benefit entitlement – and guess what? – Full-time students are not regarded as eligible to pay rent…..even though of course they mostly all do. There are some exceptions, but for the vast majority of single students without children or disability, the government has decided they don’t really pay rent at all … those monthly rent payments must be an illusion.
When is your partner not your partner?
When you are a student under the age of 25 years…
Imagine you are 20 years old and you have been living with your partner since you were both 16 years old. When you apply for welfare benefits you are regarded as a couple. When you become a full-time student the DWP and the benefits agencies take into account some of your student income which impacts the means-tested benefit you and your partner are entitled to. Fair enough.
You apply to Student Finance England for the Adult Dependent Grant but are told for the purpose of this grant that as you are under 25 years of age, your partner is not your partner. Even though they are your partner when it comes to Job Seekers Allowance or Universal Credit entitlement. Even though they would be considered your partner by Student Finance England if you were over 25.
As a couple you will lose out on Adult Dependent Grant income simply by virtue of your age. The non-student partner will lose access to means-tested welfare benefit income for themselves.
When is your financially dependent partner not “an adult who financially depends upon” you?
When they are also a student who is also awarded statutory student finance. Which may seem fair enough until you consider a scenario like this.
Imagine you are a full-time higher education student aged over 25 years. Prior to starting your course you and your wife claimed Job Seekers Allowance as a couple. When you start your course you are entitled to student loans for your fees and living costs, and an adult dependent’s grant as your wife has now lost access to Job Seekers Allowance – due to your student income.
Your wife decides to take a further education course to improve her chances of finding work. She accesses the Advance Learner Loan to help pay for her tuition fees. She isn’t entitled to any living cost help. Imagine your surprise then when Student Finance England advise that you are no longer entitled to the Adult Dependants Grant, which is stopped.
If your wife were only to stay at home watching TV then the grant would be safe.
The wife has lost all income into the household for herself because she and her hubby are trying to improve their education.
Nobody explains these problems to you
The problem with all these exceptions is that there is little to no information about them on www.gov.uk or the student finance web pages. Even many benefit advisers find the adult dependent rules baffling!