Chapter 17: How income affects means-tested benefits

This chapter covers:

1. Working out your income (here)

2. Grants and loans (here)

3. Dividing student income throughout the year (here)

4. Discretionary funds and other payments (here)

5. Earnings (here)

6. Benefits and tax credits (here)

7. Maintenance (here)

8. Savings and other capital (here)

This chapter explains how much weekly income is taken into account when working out your entitlement to income support, income-based jobseeker’s allowance, income-related employment and support allowance and housing benefit. For information on how income affects universal credit, see Chapter 16. Although tax credits are also means tested, the way student and other income is assessed is different (see Chapter 18).

 

Basic facts

•Student loans are normally divided over 42 or 43 weeks from the beginning of September to the end of June and taken into account as income for means-tested benefits during that period. If your income is too high, you do not get income support, income-based jobseeker’s allowance or income-related employment and support allowance, and your housing benefit (HB) is reduced.
•The amount of student loan you are eligible for is taken into account as income, whether or not you apply for it.
•If you or your partner are over pension age, your student grant and loan are ignored as income for HB.
•Student loans are normally not taken into account as income for means-tested benefits from around the end of June until the beginning of September. You may be able to get benefit (or more benefit) during these months even if your income was too high during the academic year.
•Some grants are also taken into account as income, but others do not affect your benefit.