Universal Credit and Pension Credit rules can be tricky, especially for students and pensioners. Here, we explain the latest changes, common problems with bedroom claims, and what you need to know to avoid missing out.
UC for students
It’s the time of year when many young people head off to university or begin higher-level courses. But it can be confusing to know whether students in full-time education can claim Universal Credit (UC).
Most students in full-time advanced education – such as an undergraduate degree, foundation degree, Higher National Diploma or Higher National Certificate – are excluded from claiming UC. Full-time means the course is advertised as such by the education provider, regardless of the hours actually studied. (Open University students are treated as part-time and are not covered here.)
There are, however, some important exceptions. Full-time students may still be able to claim UC if:
- they have a partner who is eligible to claim UC, or
- they are responsible for a dependent child or qualifying young person, or
- they were assessed as having Limited Capability for Work before starting their course and receive a qualifying disability benefit such as PIP or ADP
If any of these apply, and their income (including student income) is low enough, they may be entitled to UC.
The maintenance loan usually counts as income during term-time, but not in three or four assessment periods over the summer. Students who cannot qualify during the year should consider applying during this summer break.
If someone is already on UC when they start studying, their award will be reassessed to reflect student income and any changes to their circumstances. If they are not eligible, UC will stop from the start of their course.
Find out more here: https://www.gov.uk/guidance/universal-credit-and-students
Pension credit
The government has said it is making it easier for pensioners to claim Housing Benefit and Pension Credit next year.
At present, pensioners who qualify must apply for Housing Benefit and Pension Credit separately, which can be confusing and leads to people missing out. The government’s new proposal would mean one way of claiming both benefits, starting in 2026.
There was a long-standing plan that Pension Credit would eventually include help with rent, removing the need for pensioners to claim Housing Benefit separately.
The government has now said Housing Benefit will continue for people over State Pension age for the foreseeable future. Instead, it is bringing the administration of Housing Benefit and Pension Credit together, which should make it easier for pensioners to receive the financial support they are entitled to.
No further detail has been given, but the overall message is clear – Housing Benefit is not being abolished for pensioners. Instead, the process for claiming it alongside Pension Credit should become more straightforward.
More information here: https://www.gov.uk/pension-credit
Bedroom claims
We often hear from people moving from Housing Benefit to Universal Credit who suddenly find their housing costs reduced because UC hasn’t included their need for an extra bedroom.
When making a UC claim, there is currently no question asking about the need for an additional bedroom, which can mean that the Housing Costs Element is worked out using a lower Local Housing Allowance (LHA) rate or that an under-occupancy deduction is wrongly applied.
Under Housing Benefit this issue may not have arisen, so the reduction often comes as a surprise.
In many cases this isn’t spotted straight away. Weeks or even months later, when claimants raise it with DWP, the deduction is usually corrected – but only from the assessment period in which they reported the problem.
If you are affected, you should ask for a Mandatory Reconsideration of DWP’s decision. Make it clear that the assessment was made without the full facts and request that the extra bedroom is included from the start of your UC award.
It’s possible to ask for this to be backdated as an “any grounds” revision of the decision, provided the request is made within 13 months.
More details here: https://www.gov.uk/universal-credit