Do I Have to Tell Universal Credit About Student Finance? UK Guide

If you're a student in the UK and also claiming Universal Credit, it’s essential to understand how your student finance affects your entitlement. Not all forms of student income are treated the same, and some can reduce how much you receive. Crucially, you’re required to report certain types of financial support to the Department for Work and Pensions (DWP) – and failure to do so could affect your payments.

This guide explains whether you need to tell Universal Credit about student finance, which types of student income are taken into account, and how DWP calculates support for students.

Eligibility for Universal Credit as a Student

In most cases, full-time students are not eligible for Universal Credit. However, there are exceptions. You may qualify if you’re a student and:

• You’re a single parent

• You live with a partner who is also eligible

• You’re disabled and receive Personal Independence Payment (PIP) or Disability Living Allowance (DLA)

• You’re under 21 and in full-time non-advanced education (and without parental support)

• You’ve reached State Pension age but have a partner who hasn't

Part-time students may also be eligible depending on their circumstances.

Even if you meet the eligibility rules, your student income can reduce your Universal Credit payment.

What Student Income Affects Universal Credit?

DWP takes into account certain student finance when calculating your Universal Credit award. These are typically:

• Maintenance loans

• Grants for living costs

• Bursaries that help cover day-to-day living expenses

This is because Universal Credit is designed to support living costs – and if you already receive support for this through student finance, your UC payment will be reduced accordingly.

The tuition fee element of a student loan is not counted, nor are loans or grants used specifically for books, equipment, or travel related to your course.

Any income from part-time work is also counted separately and may further reduce your UC.

What Period Is Student Income Taken Into Account?

Student finance is treated as income across your academic year, not just in the months it’s received. DWP spreads the assessed income across a fixed period called your “student assessment period.”

This typically starts on the first day of your course or term, and DWP will divide the annual support into monthly amounts to calculate your UC award.

Even if you receive your loan or grant in a lump sum, it’s treated as income in equal parts over each month of the assessment period. The holiday months outside your academic year usually aren't counted unless you’re receiving student income during that time.

What Information Should I Provide to Universal Credit?

When you apply for or update your Universal Credit claim, you must:

• Tell DWP you’re a student

• Provide the name and level of your course

• Give evidence of your student finance – such as your Student Loans Company (SLC) breakdown letter

• Disclose whether you're receiving grants, bursaries, or support through NHS or other funding bodies

• Provide your term dates and course schedule

You’ll also need to upload copies of any correspondence from your university or Student Finance confirming the breakdown of your loan (e.g. tuition fees vs maintenance loan).

The more accurate the information you provide, the smoother the process will be.

What Should I Do If My Student Income Has Been Incorrectly Assessed?

Mistakes can happen. If you believe that your Universal Credit has been calculated incorrectly, or DWP has included income it shouldn’t, you should:

1. Contact Universal Credit via your online journal

2. Clearly explain what you believe is wrong

3. Provide evidence – for example, loan breakdowns, grant letters, or a university letter clarifying the nature of the funding

4. Ask for a mandatory reconsideration if your issue isn’t resolved

In some cases, DWP may mistakenly include your tuition fee loan as income, or fail to account for the months when you’re not studying. You’re entitled to request a review and challenge the decision if necessary.

Summary

If you’re claiming Universal Credit while studying, it’s essential to inform DWP about your student finance – particularly your maintenance loan and grants. Failing to report this can lead to incorrect payments, overpayments, or even penalties.

Only income meant to support living costs will be deducted from your UC, and it will be spread out across your academic year. Providing detailed, accurate evidence upfront helps avoid issues later. And if your payment is wrong, don’t hesitate to challenge it through your journal or a formal reconsideration.

Staying transparent and proactive ensures your Universal Credit support reflects your real financial circumstances throughout your studies.