3. Dividing income throughout the year
Universal credit (UC) is paid monthly, for an ‘assessment period’. Each assessment period runs from the day of the month you claimed UC, for one month – eg, if you claim on the second of the month, each assessment period runs from the second of the month to the first of the following month. The annual amount of your student income must be divided over the number of assessment periods in the course year to arrive at the monthly amount that is used to work out UC. If your UC award starts during the course, each period of a month before your award starts is treated as an assessment period when working out over how many assessment periods your student income counts – ie, some student income is ‘allocated’ to notional assessment periods before the UC award starts.
Student income counts for each assessment period during your course, excluding the one at the end of each academic year and those in the long vacation.1Reg 68 UC Regs Student income counts as income:
•from the start of the assessment period in which the course/course year begins; and
•for every subsequent assessment period during the course/course year.
Student income is ignored:2Reg 13 UC Regs •in the assessment period in which the course ends or the long vacation starts; and
•in any assessment period that falls completely within the long vacation; and
•if you abandon or leave your course completely, in the assessment period in which you leave.3para H6152 ADM
Long vacation
The ‘long vacation’ is the longest holiday in a course which lasts at least two years, and must last for at least one month.4Reg 68(7) UC Regs Note that for courses with no long vacation (such as paramedic, nursing and midwifery courses), this may mean that student income is taken into account over 12 months of the year. Masters courses are also usually one full year.
Once you have calculated the number of assessment periods in the course year, divide the total annual amount of loans and/or grants by this number, and apply the monthly disregard. £110 of student income is disregarded in each assessment period.5Reg 71 UC Regs Examples
Laura has a five-year-old daughter and is single. She starts a degree course. Year one of her course runs from 23 September 2024 to 9 May 2025. Her assessment periods run from the third of the month to the second of the following month.
Step 1: Laura gets a loan of £10,400 (£8,000 maintenance loan and £2,400 special support loan), independent students’ bursary of £1,000 and lone parents’ grant of £1,305.
Step 2: her independent students’ bursary and special support loan are disregarded. Her maintenance loan and lone parents’ grant (total £9,305) count as income over eight assessment periods in the first year of her course (from 3 September 2024 to 2 May 2025).
Step 3: £9,305 ÷ 8 = £1,163.12
Step 4: £1,163.12 – £110 = £1,053.12
Step 5: she has no other income. Laura’s UC is calculated on student income of £1,053.12 a month from 3 September 2024 to 2 May 2025. From 3 May 2025, weekly income from her student funding is nil. Laura’s next UC payment in June 2025 will be based on £0 student funding.
Paula has a seven-year-old son and is single. Her course runs from 2 September 2024 to 30 May 2025. Her assessment periods run from the 14th of the month to the 13th of the following month.
Step 1: Paula gets a further education bursary maintenance allowance of £1,120 (40 weeks at £28).
Step 2: her bursary counts as income over nine assessment periods (from 14 August 2024 to 13 May 2025).
Step 3: £1,120 ÷ 9 = £124.44
Step 4: £124.44 – £110 = £14.44
Step 5: she has no other income. Paula’s UC is calculated on student income of £14.44 a month from 14 August 2024 to 13 May 2025.
Jack is a nursing student and is single with a six-year-old son. Year one of his course runs from 16 September 2024 to 12 September 2025. His assessment periods run from the 6th to the 5th of each month.
Step 1: Jack gets a nursing bursary of £10,000, a dependants’ allowance of £3,640 and a single parent’s allowance of £2,303.
Step 2: his student income of £15,943 counts as income over 12 assessment periods (from 6 September 2024 to 5 September 2025).
Step 3: £15,943 ÷ 12 = £1,328.58
Step 4: £1,328.58 - £110 = £1,218.58
Step 5: Jack has no other income. His UC is calculated on student income of £1,218.58 from 6 September 2024 to 5 September 2025.