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TOPIC: Universal credit 'hits students harder'

Universal credit 'hits students harder' 07 Dec 2018 08:04 #11880

  • TheFinnster
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Students who claim universal credit are being hit harder by reductions than people who are in work, according to the NUS.

Under universal credit, for every £1 that someone earns through work, they will see 63p deducted from their monthly payments.

However, for students, their loans and grants are treated as unearned income and therefore untaxed.

For each £1 they receive, they will lose the same amount from their claim.

The Highlands Council area has had the longest association with universal credit in Scotland.

The UK government said the aim of universal credit was to simplify the system and make sure more people benefited from being in work.

It replaces six benefits and merges them into one monthly sum paid in arrears.

The six benefits are:

income support
income-based jobseeker's allowance
income-related employment and support allowance (ESA)
housing benefit
child tax credit
working tax credit

According to figures held by the Department for Work and Pensions (DWP), 128,253 people were claiming universal credit in Scotland as of October 2018.

Just over 60,000 of them were said to be seeking work.

In late 2013, the system was started as a pilot scheme.

Since then, 9,000 people in the Highlands have moved on to the benefit, with another 13,000 to be transferred before 2023.

READ MORE: ''People are worried sick about universal credit'

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