DWP urged to disregard student loans as income for new Universal Credit claims

Social Justice Secretary Shirley-Anne Somerville has written to the UK Government urging the Department for Work and Pensions to stop treating student loans as income for people making a claim for means-tested benefits. Some students may be entitled to claim Universal Credit, for example if they are disabled or have responsibility for a child, but student loans are currently considered as income when calculating what they are entitled to.

In the letter to Viscount Younger of Leckie, Ms Somerville highlighted how the cost of living is impacting students, with 64 per cent struggling to pay rent and 18 per cent turning to foodbanks.Ms Somerville continues: “It is clear that more could be done to support students in this situation who are striving to improve their long-term job prospects by seeking further and higher education.

“Student maintenance loans are just that - loans which are to be repaid rather than income which is to be kept.”

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