2. This paper represents the position up to academic year and gives an overvie w of.

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1 PART TIME 1 (PT1) P ROJECT WELFARE BENEFITS AND PART-TIME STUDENTS Introduction 1. One of the recommendations of the Funding for Learners Review was to look in detail at the support available to part-time students in further and higher education. The Part Time 1 (PT1) Project aims to improve the evidence base and clarify the definitions used. PT1 will inform the Part Time 2 (PT2) Project., which will consider options for developing and implementing improved funding mechanisms for part-time students. 2. This paper represents the position up to academic year and gives an overvie w of. Backgroun d the welfare benefits that part-time students are eligible for ; the main issues experienced by part-time students in relation to the interactio n between their student support and benefits ; and the information available to students on welfare benefits. 3. Generally, part-time students are eligible to receive welfare benefits, however it is important to note the definitions of part-time study used by Jobcentre Plus for the purposes of assessing Income Support and Jobseeker's Allowance, the main income assessed benefits. In Further Education (FE), if the student is aged under 19, the course is classed as part time if it is up to 12 hours per week during term time. If the student is aged 19 or over, the course is part time if it involves up to 16 hours per week of classroom or workshop learning and no more than 21 hours a week when any structured study hours are included. In Higher Education (HE), the course is classed as part time if the institution defines it as a part time course. 4. Most full-time undergraduate students were removed from the benefits system in 1990 to avoid duplication of support to meet basic living costs. Only a small proportion of full-time students still receive means-tested benefits, including those with dependants and students with disabilities. Some of the resources saved by the benefits system at that stage were transferred to the Department for Education and Skills and the then Scottish Office and used to establish access funds. 5. Generally, grant income which supports attendance of the course, rather than living costs, is disregarded by the Department for Work and Pensions (DWP) for the purpose of assessing means-tested benefits (Income Support, Jobseekers Allowance, Housing Benefit and Council Tax Benefit). 6. In FE, the bursary allowance would be taken into account but the additional support needs for learning allowance, the study expenses allowance and travel expenses would be disregarded. 1

2 7. In HE, the part time student loan is for study related costs, such as equipment, travel, books, photocopying, paper and so on, so it should be disregarded. The Disabled Students Allowance (DSA) is also disregarded. 8. In both FE and HE, payments from the discretionary funds towards hardship and childcare costs will not be taken into account unless the payment is towards general living costs. Position in England and Wales 9. A Learning and Skills funded course in England or a National Council for Education and Training funded course in Wales is ;part time if it involves less than 16 guided learning hours per week. Guided learning hours are hours when a member of staff is present to guide learning on a programme including lectures, tutorials and supervised study. 10. In England and Wales, part time HE students studying at least 50% of a full time course can apply for a grant for fees of between 590 and 1125, linked to the intensity of their study. They can also apply for a course costs grant of 250. Both the fee grant and course cost grant are based on the student's income. Part-time students may also apply for additional help from the Access to Learning Fund for help with costs such as childcare. In addition, those on courses which are less than 50% of a full time course may be able to get help with fees and other course costs through the Access to Learning Fund. In Wales, the Assembly Learning Grant is available to students undertaking up to 30 credits. 11. Students in receipt of Income Support, Housing Benefit, Council Tax Benefit, income based Jobseekers Allowance or the New Deal Allowance automatically qualify for the full award for fees and course costs. The fee grant, course costs grant and Assembly Learning Grant in Wales should all be disregarded by DWP. Any payments received from the Access to Leaming Fund will also not be counted, as long as they are not meant to help with day-today living costs. Welfare Ben efits 12. The table below gives an overview of the welfare benefits and details whether parttime Scottish students in further and higher education will be eligible for them. Except where stated, the definition of part-time study is the definition used by Jobcentre Plus for Income Support and Jobseeker's Allowance : Further Education (FE): aged under 19 - up to 12 hours per week during term time. Aged 19 or over - up to 16 hours per week classroom or workshop learning and n o more than 21 hours a week when any structured study hours are included. Higher Education (HE) : if the university defines the course as part time. Except where indicated, all benefits are administered by Jobcentre Plus. Benefit FE Students Income Suppo rt HE Students Basic financial support Eligible under usual Eligible under usual for people under 60 who Income Support rules, i.e. Income Support rules, i.e. are not expected to sign in one of the following in one of the following 2

3 Benefit FE Students HE Students on as available for work. groups : sick, disabled, a groups : sick, disabled, a lone parent, a carer, lone parent, a carer, Premiums payable for: pregnant (and sick or pregnant (and sick or bereavement, carers and nearly due) and in some nearly due) and in som e disability other circumstances other circumstance s Jobseeker's Allowanc e FE bursary taken int o accoun t Basic financial support If available for work & If available for work & for people who are actively seeking work actively seeking work expected to sign on for work Must have a Learning Agreement from the college that shows the hours undertaken Housing Benefit 16 and 17 year olds not usually eligible but may be eligible if in severe hardship, couple with child and some care leaver s Dealt with by local Generally eligible, except Generally eligible, except authorities some part-time students some part-time student s in halls of residence e.g. in halls of residence e.g. student carers student carer s If under 19, 12 hour rule If under 19, 12 hour rul e does not apply - 16/21 does not apply - 16/2 1 hour rule applies instead hour rule applies instea d Council Tax Benefit Administered by local Eligible Eligible authorities and helps pay the council tax Child Tax Credits Payment for people with Eligible Eligible children, administered by HM Revenue and Customs (HMRC ) Working Tax Credit s Helps to supplement low Eligible if working over Eligible if working over

4 Benefit FE St u dents HE Students wages, administered by 16 hours per week 16 hours per wee k HM Revenue and Customs (HMRC) Only eligible for Only eligible for childcare element if a childcare element if a Elements payable: basic, lone parent and working lone parent and working lone parent/couple, hours per week or 16 hours per week o r hours, disability, severe more, or a couple and more, or a couple an d disability, 50+, childcare both working 16 hours or both working 16 hours o r more (or one more (or one incapacitated, in hospital incapacitated, in hospita l or in prison) or in prison) Carers Allowance For people who spend 35 Eligible Eligible hours a week looking after a disabled adult or child Course is classed as full - time for CA if the student attends for 21 hours o r more a week, includin g individual study fo r course work, whether at home or at college, alon e or in the presence of a supervisor Disability Living Allowance For disabled people who Eligible Eligible need help with personal care or who have mobility difficulties Health Benefit s Exempt from or able to Under 18 - eligible for Under 18 - eligible fo r claim a reduction on free NHS dental free NHS denta l prescriptions; sight tests; treatment treatment glasses and contact lenses ; dental treatment ; Under 19 and 19 and over Under 19 and 19 and ove r travel to hospital - not automatically - not automatically exempt but may get help exempt but may get hel p if in an exempt group or if in an exempt group or under low income under low incom e scheme. Free health scheme. Free health benefits only in full-time benefits only in full-tim e education. education. Incapacity Benefit

5 Benefit FE Students HE Students For people incapable of Under 20 -after 28 Under 20 - after 2 8 work weeks of incapacity (or weeks of incapacity (or straightaway if enough straightaway if enoug h NI contributions have NI contributions hav e been paid) been paid) Over 20 - through Over 20 - through national insurance national insurance contributions contribution s Maternity and paternity benefits Eligible, if employment Eligible, if employmen t conditions are satisfied conditions are satisfied Pension credi t Means tested benefit for Eligible Eligible people aged 60 or over providing a guaranteed minimum income leve l Social fun d Regulated social fun d payments made up of - Sure Start maternity Eligible if in receipt of Eligible if in receipt of grants; and Income Support or other Income Support or othe r Funeral payments qualifying benefit qualifying benefi t Cold weather payments Eligible if in receipt of Eligible if in receipt of Income Support or Income Support o r Jobseeker's Allowance Jobseeker's Allowanc e Winter fuel payments Everyone aged 60+ Everyone aged 60+ Discretionary social fun d payments made up o Eligible if in receipt of Eligible if in receipt of Community care grants Income Income Budgeting loans Support/Jobseeker's Support/Jobseeker's Crisis loans Allowance Allowance Issues - Fundin g Definitions The different definitions of part-time study used in further and higher education and b y Jobcentre Plus can cause difficulty and confusion. For example, the SAAS definition of part-time study (for HE student support) as at least 50% of a full-time course can 5

6 adversely affect some students, particularly those with disabilities or health considerations, who may choose or only be able to undertake less than 50% of a course. Transition periods The fear of losing benefits or disruption to benefits during transition periods can be a disincentive to study. Housing Benefit (HB) applications are supposed to be handled within two weeks, however the situation varies between local authorities and this timescale is frequently no t met. Part-time students can keep entitlement to Income Support (IS) or income based Jobseekers Allowance (JSA) and thus maximum HB. In full-time HE however, student s can no longer receive JSA, and lone parents and others eligible for IS usually find thei r student loan grant is above IS levels. Because neither JSA or IS is paid, HB has to b e reassessed which can lead to long delays and the possibility of the student getting into rent arrears. During the long vacation, lone parents and others eligible for IS have t o reclaim IS and again have their HB reassessed, leading to further delays. Housing Benefi t Housing costs are a major issue. While lone parents and disabled students may be able to continue to claim some means-tested benefits while studying full-time, most other students cannot. Consequently, low income students can feel that their housing may be put at risk unless they can keep entitlement to Housing Benefit by studying part time. Childcare Low income parents may have put together packages of childcare support while in FE but cannot necessarily sustain these in the transition to HE, because they will need to reapply for different discretionary childcare funds. Jobcentre Plus Decision makers in Jobcentre Plus may sometimes lack knowledge about the interaction between benefits and student support. Although there are national guidelines, the complexity of the rules can result in students in similar circumstances receiving different decisions on their benefit entitlement depending on their location, so students and their advisers are not always able to predict what benefits they will get. Also, some Jobcentre Plus staff may assume that because someone is capable of undertaking a vocational course, they are capable of working, therefore impacting on their eligibility for some benefits. Carer's Allowance (CA) The definition of full-time for CA - 21 hours or more a week, including individual study for course work - is different to the definition of full-time used for other benefits. So, a course could be classed as full-time for CA (meaning the student would not be eligible), yet part-time for IS. Therefore a part-time student could be eligible for IS, but lose their CA, which in turn would reduce the amount of IS they can get. Young students Young people who are estranged from their parents or who are orphans can access IS if they are studying full-time but not if they are part-time. 6

7 The benefit rules change when a student reaches their 19th birthday. They may have bee n on a part-time course as defined by the college (16 hours) but count as full-time fo r benefit purposes (over 12 hours) and therefore able to access IS if they are estranged fro m their parents and in some other circumstances. From age 19, estranged young people on part-time courses lose access to IS but would be eligible for JSA, so they have to meet th e job-seeking requirements and may be unable to complete their course. In some cases, the benefit rules favour full-time students over part-time. For example, part-time students over 18 living at home in low income households can reduce their parents' housing benefit or increase the amount of council tax they have to pay because a `non-dependant deduction' is made. This is because the benefits system does not expec t full-time students to make a contribution towards household expenses but, depending o n age and other factors, can expect part--time students to do so. Adult Learning O ption The New Deal for Skills is a package of measures being piloted by DWP in England only to support those who have significant skills gaps which act as a barrier to sustained employment. Part of the package is an Adult Learning Option (ALO) which will test the effectiveness of a financial incentive to undertake a full time learning option to achieve a first full VQ Level 2 qualification, and whether this qualification in turn leads to increased employability. DWP are using ALO to test some changes to the 16 hour rule as evidence suggests that some people on JSA are actually undertaking full time learning. DWP propose to change the 16 hour rule to ensure that part time learning is genuinely part time and that job search remains the main activity of those on JSA. The Adult Learning Option pilot, which will run in England from September this year, will test the change of definition of part-time/full-time study for DWP purposes. At present, the 16 hour rule is seen as being at odds with the reality of FE in England ; where in practice anything over 13 hours is full-time. Legislation will be introduced to make the full-time definition anything over 13 hours in the pilot areas. Although the ALO pilot is in England only, if it is decided to make the 16 hour rule more strict it will apply across the UK, although this would be quite a long way down the line. Information and advic e 13. The regulations surrounding benefits eligibility and the interaction with the student support system can be complex. A wide range of information and advice is available both from the bodies directly involved (the Department for Work and Pensions, Jobcentre Plus, institutions etc) and through websites, guides and booklets from other organisations, such as the Child Poverty Action Group (CPAG). Department for Work and Pensions (DWP) 14. DWP produce a guide `GL19 School Leavers and Students : a quick guide to benefits you may get if you have just left school or are a student of any age'. DWP produce other guides, not directly aimed at students, but which will also be relevant, available from their website and offices. These are :- 7

8 BC1 Babies and children : for information about benefits and tax credits for peopl e expecting a baby or bringing up childre n SD1 Sick or disabled : for information about benefits and tax credits for sickness o r disability. SD4 Caring for someone : for benefits for carers 15. General information on benefits is also available through the DWP website at This includes an A to Z of benefits and services, although obviously students would have to know what benefit or service they were looking for. There is no specific section of the site dedicated to students. Jobcentre Plu s 16. Jobcentre Plus is part of DWP and is responsible for assessing benefits and making payments. Their website ( provides detailed information on benefits and there is an area of the site for those who are studying or who are leaving school. This directs the reader to the benefits they may be entitled to. Child Poverty Action Group (CPAG ) 17. CPAG produce the `Benefits for Students in Scotland' Handbook, now funded by the Executive and distributed to all institutions. This guide to benefits and tax credits for students in Scotland is intended for use by advisers and provides information on the following : Benefit and tax credit rights for full-time students Benefit and tax credit rights for part-time students A quick guide to grants and loans for further and higher education students in Scotlan d How Scottish grants and loans affect benefi t How much income support and housing benefit is paid in term time and vacations Studying and claiming jobseekers allowanc e Studying and claiming benefits for ill health and disability Benefits and tax credits for students with children Lone parents rights to benefits and tax credit s This information is also now available on-line at ~,,.org.uk 18. CPAG also provide a training, advice and information service, with funding from the Executive. The objective is to increase the capacity of front line advice services both within further and higher education institutions and the wider community to provide accurate, high quality and effective advice and information on benefits and tax credits for students to eligible claimants, particularly lone parents and those on low income. CPAG have employed a Project Worker who is responsible for providing advice and support mainly to advisers in institutions, delivering training and developing information sheets on aspects of benefits for students in Scotland. HM Revenue and Customs (HMRC) 8

9 19. HMRC have a dedicated section of their website ( for students, which gives information on, amongst other topics, tax credits and child benefit. SAAS Website 20. SAAS provide basic information on benefits on their website ( o~ v.uk), but generally advise students to contact Jobcentre Plus direct. NU S 21. The NUS website has an information section devoted to money and funding, including information on student support and benefits ( NUS produce welfare information sheets on a range of topics, including :- Students and the council tax Students and tax credit s Students and social security benefits Help with health cost s Skill Scotland 22. Skill, the national bureau for students with disabilities, is an independent charity that promotes opportunities for people with any kind of disability in learning and employment. Skill provides a free information and advice service for individual disabled people and the professionals who work with them, via a freephone helpline, and their website ( 23. Ski ll produced the FFL publication `Helping you meet the cost of learning - funding for disabled students ' which gives information on benefits. Skill also produce information booklets (available on their website) on :- Income Support for Disabled Student s Housing Benefit and Council Tax Benefit for Disabled Students Studying and Claiming Benefits as Incapable of Wor k Tax Credits Part Time 1 Project Funding For Learners Division March