Chapter 16: How income affects means-tested benefits
This chapter explains how much weekly income is taken into account when working out your entitlement to income support (IS), income-based jobseeker’s allowance (JSA), income-related employment and support allowance (ESA) and housing benefit (HB). For information on how income affects universal credit, see Chapter 15. Although tax credits are also means tested, the way student and other income is assessed is different (see Chapter 17). Basic facts
•Student loans for maintenance count as income and 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 IS, income-based JSA or income-related ESA, and your HB is reduced.
•The amount of student loan for maintenance you could get 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 more benefit during these months even if your benefit was reduced during the academic year.
•Some grants are also taken into account as income, but others do not affect your benefit.
A grant is defined as an educational grant or award, bursary, scholarship or allowance, and does not include education maintenance allowance or discretionary fund payments.1IS Reg 61(1) IS RegsJSA Reg 130 JSA RegsESA Reg 131(1) ESA RegsHB Reg 53(1) HB RegsAll Definition of ‘grant’ In general, grants intended for living costs are taken into account and grants for other costs are disregarded. For the way that discretionary funds are treated, see here. If you are not eligible for a student loan, deduct from your grant:
An assessed contribution from a partner or parent counts as income, whether or not you receive it. However, for IS and income-related ESA, if you are a disabled student, only include contributions that are actually paid.2IS Reg 61(1) IS RegsESA Reg 131(1) ESA RegsHB Reg 53(1) HB Regs Ignore any grants for:3IS Reg 62(2) IS RegsJSA Reg 131(2) JSA RegsESA Reg 132(2) ESA RegsHB Reg 59(2) HB Regs •tuition fees or exam fees;
•course-related disability costs;
•residential study away from your normal home;
•books and equipment, or travel;
•for IS, income-based JSA and income-related ESA only, maintenance of a child dependant;
•childcare costs.