STATE BENEFITS

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STATE BENEFITS HEBuilding Financial Futures 3
7th February 2008

• John Muir
• Hallam Union Advice Centre Manager

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STATE BENEFITS HE

• Overview
• Group work
• Student Funding
• Benefits
• Examples
• Advice

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Overview

• Students from low economic backgrounds are still
  under represented in HE
• Far more likely to
• have a complicated path through HE
• work longer hours during term time
• suspend, repeat or drop out from their studies
• Financial issues are often key
• Often a lack of clear info on Students Benefits

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GROUP WORK - Q

• What is the main financial question you get asked
  by prospective students?
• What financial issues do you think deter
  perspective students?
• What questions would you like answered?

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GROUP WORK - A

• Go through group answers
• Hopefully this session will cover some of main
  issues

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Student Funding Overview

• DUIS Funding (fka DfES)
• most degree courses
• paid termly (eg Sept/Jan/Apr)
• NHS Funding
• health care type course
• paid monthly
• This session will mainly look at DUIS students

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DUIS Student Support

• Student Support
• (currently through Local Education Authority
  (LEA))
• Maintenance Grant or
• Special support Grant - up to 2765
• Living Costs Loan - up to 4510
• Tuition Fee Loan - up to 3070
• Extra Grants available for students with children
  and disabilities.
• Funding from University
• e.g. Sheffield Hallam University
• Hallam Grant Bursary - 700
• Hallam Access Bursary - 300
• Access to Learning Funds

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Grants for Dependants

• To get the following grants your dependents must
  be 'wholly or mainly' financially dependent on
  you.
• Adult Dependents' Grant
• For your spouse, partner or other adult dependent
  - up to 2510 per
• year.
• Parent Learning Allowance
• For students with children one grant per
  household, not per child.
• Up to 1435 per year.
• Childcare Grant
• Meets 85 of costs throughout academic year and
  summer vacation.
• These grants are means tested, the thresholds for
  these grants are much
• lower than for your Maintenance Grant and Student
  Loan.

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Disabled Students

• Disabled Student Allowance
• Administered by LEA
• Additional costs of study due to disability
• Not means-tested
• Disabled Student Support Team can assist

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• Dave is 19 and started a Business Studies degree
  in September 2007. His parents earn under
  17'910 per year. He is currently studying at
  Sheffield College which is a partnership college.
• Funding From LEA
• Tuition Fee Loan 3070 (paid direct to SHU)
• Maintenance Loan 3380
• Maintenance Grant 2765
• Funding from Hallam
• Hallam Grant Bursary 700
• Hallam Access Bursary 300
• Total Living Costs Support 7145
• If the student does not want to take out the
  Tuition Fee Loan he can put his other funding
  towards his fees instead. The student would then
  have 3070 less to live off per year.

EXAMPLES
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• Sarah is a single parent studying a Computer
  Science degree. She has two children and is not
  working.
• Funding from LEA
• Tuition Fee Loan 3070 (paid direct to SHU)
• Maintenance Loan 4510
• Special Support Grant 2765
• Parent Learning Allowance 1435
• Childcare Grant 85 of costs
• Funding from Hallam
• Hallam Grant Bursary 700
• Hallam Access Bursary 300
• Total Living Costs Support 9710 childcare
• Sarah can claim Child Tax Credit and possibly
  Income Support and Housing Benefit. Sarah may
  also be entitled to further funding from the
  Access to Learning Funds.

EXAMPLES
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Students Benefits - Summary

• Most students taken out of the benefits system in
  late 80s/early 90s
• Mainly those with children or disability that may
  be able to claim
• Student Funding Benefits systems
• not very joined up
• overly complicated
• Has improved over last 10 years especially for
  lone parents

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Benefits - Summary

• Means Tested
• Income Support
• JSA (Income Based)
• Social Fund
• Housing Benefit
• Council Tax Benefit
• Non-Means Tested
• Child Benefit
• JSA (Contrib Based)
• Incapacity Benefit
• Carers Allowance
• Disability Living Allowance
• Tax Credits
• Child Tax Credit
• Working Tax Credit

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Means Tested Benefits

• Income Support Ensures minimum income
• JSA(Income Based) Jobseekers who have not paid
  enough NI contrib
• Social Fund Payments to those in need
• Housing Benefit Assistance with rent
• Council Tax Benefit Assistance with council tax
• NB Full time Students normally exempt from
  Council Tax
• Eligibility
• Means-tested they depend on claimant's income
• Have to meet particular benefits normal criteria
• Plus category of student who can claim e.g.
• Lone parent
• Student couple with children (n/a for Income
  Support)
• Disabled or incapable of work for over 26 weeks
• Student who has taken time off course due to
  illness and awaiting return (n/a for Income
  Support)

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Non Means Tested Benefits

• Child Benefit
• Weekly benefit for those with children
• Incapacity Benefit
• If incapable of work and paid enough NI contrib
  OR qualify trhough "Incapacity in Youth"
• Can be paid on top of student funding
• JobSeekers Allowance (Contrib Based)
• If Job seeking and paid enough NI contrib
• Carers Allowance
• Benefit for those caring for over 35 hpw
• NB Cannot claim if in full time education
• Disability Living Allowance
• Benefit for those with disabilities
• Can be paid on top of student funding

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Tax Credits

• Child Tax Credit
• "income based credit" for those with children
• now main source of funding for student's children
  
• Working Tax Credit
• "income based credit" for those in work
• Have to work 16hrs for those with children,
  30hrsotherwise
• Students not prevented from claiming
• Means-tested but most student funding ignored

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Common BenefitsClaimed By Students

• Lone Parents
• Child Tax Credit
• Child Benefit
• Housing Benefit
• Income Support (Summer)
• Disabled Students
• Disability Living Allowance
• Housing Benefit
• Incapacity Benefit or Income Support
• COUNCIL TAX
• Students are generally ignored for Council Tax
  purposes

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How Will My Funding Affect My Benefits?

• Affect of student funding on parents benefits
• A student's funding will not affect their parents
  benefits.
• Affect of student Funding on student's benefits
• As mean-tested benefits depend on income, student
  funding will affect these benefits.
• However there are disregards on the amount of the
  student funding taken into account.
• Student Funding is generally ignored during July
  August so full benefits can be claimed

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• Lone Parent
• Sarah is a lone parent with two children who
  started at SHU in September 2007. She rents her
  house for 65pw from a Housing Association. As
  well as her Student Funding (see earlier), she
  should receive
• Term Time Sept - June
• Child Benefit 30.20
• Child Tax Credit 81.22
• Housing Benefit 51.71
• Total 163.13pw
• Summer July August
• Child Benefit 30.20
• Child Tax Credit 81.22
• Housing Benefit 65.00
• Income Support 59.15
• Total 235.57pw

EXAMPLES
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• Disabled Student
• Steven is a profoundly deaf student. He shares
  his house with friends and pays 65pw rent. On
  top of his student support, he should receive
• Term Time Sept - June
• DLA (low mob/mid care) 60.25
• Incapacity Benefit 98.45
• Housing Benefit 27.67
• Total 186.37pw
• Summer July August
• DLA 60.25
• Incapacity Benefit 98.45
• Income Support 22.10
• Housing Benefit 65.00
• Total 245.80pw

EXAMPLES
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Students Benefits Common Problems

• Overly Complicated systems
• Student Funding Benefit system are complicated
• Different histories do not mesh together well
• Local Offices not used to dealing with students
• Not much info out there
• Lots of myths
• Confusing for students
• eg a lone parent can have 8 different sources of
  funding
• Delays in processing
• Under/overpayments are common

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Students Benefits

• Lone parents the disabled will virtually always
  be better off as a student than on benefits
• If benefits are reduced this is due to
  increased income
• System has got more favourable over last ten
  years
• Advice Centre at the Union or University can
  advise further

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Further Information

• STUDENT SUPPORT
• DUIS (fka DfES) Student Support Guides
• http//www.direct.gov.uk/en/EducationAndLearning/U
  niversityAndHigherEducation/StudentFinance/index.h
  tm
• BENEFITS
• http//www.taxcredits.inlandrevenue.gov.uk
• http//www.adviceguide.org.uk
• Students Benefits Handbook (CPAG)
• Welfare Benefits Tax Credits Handbook (CPAG)
• ADVICE CENTRES
• Hallam Union Advice Centre 0114 225 4148
• http//www.hallamunion.com
• USUS Advice Centre 0114 220 8660
• http//www.shef.ac.uk/union

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Any Questions?
What are the 3 main points from this session to
feed back?