Benefits on graduation

osbertthesyrianhamster · 25/05/2021 10:09

@Comefromaway

The student allowance thread has made me think.

Dd graduates on 10th July.

She is due to start a postgraduate course on 11th October.

If she is unable to find work during the summer will be be able to claim Universal Credit? She will probably live at home with us for a month before moving to a shared house/flat during August.

She can, but there's a 5 week minimum wait for funds unless she takes the loan (they call it an advance, it's a loan), which sort of defeats the purpose if her course starts on 11 October.

Original poster

Comefromaway · 25/05/2021 10:13

It is 5 weeks before you are eligible or would she get 5 weeks backdated? There are 13 weeks in between her graduating and starting her new course.

Funding her postgrad is going to be VERY tight as she can only take out a maximum £11,500 postgrad loan for course fees of £25k and two year of living expense in London.

She's really hoping to find work but she will be moving accommodation twice in the space of 3 months during that time.

OP posts:

osbertthesyrianhamster · 25/05/2021 10:15

It's 5 weeks from the date you are found to be eligible in application. You can take the loan but it will be clawed back from your entitlement.

Student loans are counted as income on UC, too.

titchy · 25/05/2021 10:24

@osbertthesyrianhamster

It's 5 weeks from the date you are found to be eligible in application. You can take the loan but it will be clawed back from your entitlement.

Student loans are counted as income on UC, too.

Do you mean people are not eligible for the first five weeks?

Sorry still not clear whether they're eligible from day one and it takes five weeks, or eligible from week six?

OP's dd won't be getting a student loan during her claim - the final year of loan is lower because it finishes in July. And she won't get PG loan till October.

Original poster

Comefromaway · 25/05/2021 10:25

The course she is currently doing is not eligible for a student loan so we paid all her living costs so far and the one she will be doing isn't eligible until October 2022 as she has to do a PG diploma first for a year followed by an MA.

OP posts:

Original poster

Comefromaway · 25/05/2021 10:29

She stands more chance of getting a job if she moves early to the city she will be studying in (due to the nature of where we live and the study city) but as she will only be able to afford a shared room in a student house it will depend on tenancy dates etc whether she is able to move in early.

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chesirecat99 · 25/05/2021 10:47

Has she had a part time or holiday job? She might be eligible for JSA if she has enough NI payments.

If not, she can still apply for UC but I believe they often incorrectly refuse applications because they say the loan is supposed to cover them until September (as it is in earlier years). I think moving is going to make it even harder as she will have to reapply when she moves. It will probably be a nightmare and take ages to actually get any money but I guess it will be worth the hassle in the long run if every penny counts.

Original poster

Comefromaway · 25/05/2021 10:59

@chesirecat99

Has she had a part time or holiday job? She might be eligible for JSA if she has enough NI payments.

If not, she can still apply for UC but I believe they often incorrectly refuse applications because they say the loan is supposed to cover them until September (as it is in earlier years). I think moving is going to make it even harder as she will have to reapply when she moves. It will probably be a nightmare and take ages to actually get any money but I guess it will be worth the hassle in the long run if every penny counts.

She wasn't eligible for a loan as the course she is doing is a Level 6 diploma. She got a DaDa which was basically the course fees paid directly to the college. No maintenance element as we earn over £30k

She worked from Sept 18-July 19 earning minimum wage for 3 hours a week on a Saturday. Then in August 2019 she was self employed earning £50 per week but she lost that work when her workplace was closed in March 2020. I don't think she paid NI on those small amount.

Since July 2020 she's been working for Serve Legal on a casual basis. It's generally only £10-30 per week although over Christmas she did extra earning about £50-£60 a week covering for people who were isolating/testing positive.

OP posts:

chesirecat99 · 25/05/2021 11:05

Actually, you need to check what she is entitled to. I think the housing element for shared accomodation is capped at £154. The average weekly rent for shared private lets at my DC's uni in London is £180. By the time you've added council tax, bills, food, etc it may well cost her more than the UC. Jobs are scarce at the moment. It might make more sense to delay moving to London until her course starts. If you can afford to house her, claiming UC would at least cover her food costs at home, if she can't find a job.

And being a pessimist, there is still a small possibility that her course could end up being online in October so she could delay moving and save money even longer.

Original poster

Comefromaway · 25/05/2021 11:08

It's London she is moving to. From Cheshire!

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Original poster

Comefromaway · 25/05/2021 11:14

Yes we can house her.

The college recommend that students move down early in order to get settled in and look for part time work before the course starts. They deliberately timetable everything Monday-Thurs in order that students are free Fri-Sun to try and get work in hospitality etc.

I hope the course doesn't go online as pretty much the main reason she is doing it is to mitigate the fact that she lost so much training the last 12 months along with covid related mental health issues that she needs the extra time.

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Motnight · 25/05/2021 11:18

My dd received universal credit from towards the end of August when she left university last June. I think that the delay was her not putting in a claim earlier. She received £342.72 a month, she was living at home with no accommodation charges.

Motnight · 25/05/2021 11:20

Ah just remembered that the August payment was for the assessment period of 19th July - 19th August

chesirecat99 · 25/05/2021 11:23

She got a DaDa which was basically the course fees paid directly to the college. No maintenance element as we earn over £30k

It doesn't matter that she wasn't eligible for the maintenance element. There will be a date that the maintenance element is supposed to cover eligible students until. You would be expected to fund her until that date. She can only apply for UC after that.

Original poster

Comefromaway · 25/05/2021 11:29

That date would be 10th July then. Hardly anyone on a DaDa gets maintenance and its between £1,000 and £4,500 per year for the few that are eligible (you have to have a family income of under £21k to get the full amount).

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Orf1abc · 25/05/2021 11:42

So much incorrect information on here.

She is eligible for UC from the end date of the summer term. This may be earlier than her graduation. As an example, Nottingham University is 18th June.

As she was not entitled to a maintenance loan (as opposed to choosing not to take it), this will not be counted as income. Even if she was entitled, in the final year the loan is only intended to cover you to the end of the summer term.

There is a lengthy waiting period for UC, as the payments are made in arrears. She can take a loan/ advance to cover this period, or she can wait until the end of the waiting period to receive her first payment. She is accruing entitlement during the waiting period, so it is always worth claiming.

She does not need to start a new claim when she moves. She will have to declare a change of address, but the UC claim will continue. She would need to make a separate claim for council tax support, if applicable.

In summary, she needs to claim as soon as the current term ends.

Orf1abc · 25/05/2021 11:49

To explain the UC loan, imagine her monthly entitlement is £100* and she claims for just one month:

She can receive an advance of £100 on the day her application is accepted, to see her through the next month.
At the end of that month, she will receive her usual payment of £100.
She then closes her claim.

She has received £200, so owes £100. This can be paid off in one go or in small monthly repayments. But she has still received £100 for that month, hence it is always worth claiming, even for a short period.

Orf1abc · 25/05/2021 11:49

Her entitlement is more than £100, figure used for simplicity!

Orf1abc · 25/05/2021 11:53

This link gives all the LHA rates, select 'shared accommodation" for the rate your daughter would be entitled to.

lha-direct.voa.gov.uk/search.aspx

Original poster

Comefromaway · 25/05/2021 11:54

Thank-you, that's a really clear breakdown.

I remember back in 1996 when I graduated there was a gap of a couple of months over the summer before I started a new job and I was able to "sign on" for that time. The difference being that I stayed in my shared house rather than return home as my new job was in my student city.

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chesirecat99 · 25/05/2021 12:55

So much incorrect information on here

No one has said anything different from you.

There is a delay in payments unless you take a loan.

UC often incorrectly refuses claims on the grounds that the student loan should cover costs until September.

It won't be a simple change of address when she moves as OP's daughter will have to apply (for the first time) for the housing and council tax elements as she won't get that when she is living with her parents. My point was it is going to be a hassle, as I said... UC is not known for its ability to run smoothly.