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Student Finance England: Maintenance Loan deducted from ESA

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1 year 10 months ago #271647 by ME Jane
Student Maintenance Allowance and Legacy benefit 'Income related Employment Support Allowance'. (ESA):
My concern is that this benefit will be taken away under the new rules for UC that have been issued in December 2021. Despite my best efforts I cannot get any clarity on this complex situation as the UC 'rollout', planned over the next 2/3 years, will cut across this rule.

New DWP rule is that Students requiring LCWRA before starting their course.

1) Under this new rule students are required to apply for a student loan and this will be deducted from their benefits.  

2 ) Is the effect of this new rule that all disabled students will have their benefits cut/reduced unless they undertake a LCWRA (Limited Capacity for Work Related Activity) prior to the start of the course?

3) Further, those students on a 'legacy benefit' would have to apply for the 'new style ESA' in order to qualify for a LCWRA assessment - even if they do not qualify for this benefit?

4) Are the  DWP refusing to carry out credits only NS ESA for LCWRA assessments for this group as it is considered to be a 'work around'?
 
5) " Part-time students: "Young people who are in PART-TIME education, regardless of whether this is an advanced or non-advanced course, and who do not qualify for a **maintenance grant or loan**, should not be treated as receiving education unless the Department for Work and Pensions (DWP) believes that their course is incompatible with any work-related conditions attached to their claim."**This is the stinger what is the process for this**?

6) "Whether your child’s course is treated as part-time will depend on the course they are on. For non-advanced education, a course is part-time if it involves 12 or fewer hours of study per week. Different rules can apply to home education. For advanced education, whether a course is part-time will vary depending on the particular course and how it is funded."

I explained by telephone to the DWP that an OU distance learning course can take up to 12 years. (Although DSA is assessed annually). There is no physical campus to attend and no vacations for the holiday jobs that most non-disabled students take on. Thus my son will be without benefits for the next 12 years. 'Ah', she replied, 'non-disabled students also study with the OU' (yes, they have a job!) 'We have to be sure that your son does not have an income to support his maintenance whilst studying.' 

(The harsh reality is that my son will never work so would never pay back a loan, but he could not cope with the stress of this and I explained to the ESA that it would not be worth him engaging with any more education.)

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1 year 10 months ago #271703 by Gary
Hi ME Jane

You raise an interesting Question which unfortunately is outside the remit of this forum.

I did a quick search on the web to see what was available and came across a couple of sites; you may want to contact NUS; www.nus.org.uk/student-advice-information or www.entitledto.co.uk/help/Student-income-Universal-Credit

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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1 year 9 months ago #271715 by Angel
CPAG published a ‘Students and Benefits’ book this year. I would look at their website and order a copy.

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1 year 9 months ago #271730 by ME Jane
Yes indeed a rabbit hole cutting accross these institutions: DWP, SFE, DSA OU - none of whom have been able to provide a coherent summary or even have heard of the DWP December 2021 instruction. For those seeking more direction I have referenced the relevant law and the Judicial Review which led to the change:

I have found a patchwork of information, much is out of date and none to be found in any coherent summary. The rules differ for England, Scotland, Wales and N. Ireland. It is reasonable assumption that your maintenance loan will be deducted from any form of benefit (except PIP). However if you are part-time the maintenance loan pro-rata is reduced and quite small. SFE indicate that disabled students may qualify for 'Special Support Funding'. It is not clear whether this is a loan or a grant and repayable. Under the 'Notional Income' concept (definition only found on Turn2Us) the maintenance loan will be deducted even if you do not claim it.

The SFE, DWP and OU have not responded to my telephone enquiries re a DWP instruction that a LCWRA should be carried out prior to starting any higher education course. This was probably determined by the judicial review of July 2020 files.gcnchambers.co.uk/wp-content/uploa...CO009872020-0009.pdf

This has now been overturned by the December 2021 rule where by LCWRA should be obtained prior to starting a higher education course: www.legislation.gov.uk/uksi/2021/1224/made
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