How does a part-time maintenance loan affect ESA?

Penguin90

Starting an Open Uni degree, I'd like to take out the new part-time maintenance, however I'm not sure if my ESA is going to be reduced as a result (I'm in the income-related Support Group).

The maintenance loan would be £1,831. Apparently there is a formula for converting that into a weekly income (deduct £390 for books and £303 for travel, divide by 42, deduct £10 a week) - assuming that is correct, it comes to about £17 a week. I don't know what the DWP does with that figure, is that £17 taken off my weekly ESA payment?

If the loan is just going to be deducted from my ESA payments, then what's the point of taking one out?

Alice_Holt

Penguin90 wrote: »

If the loan is just going to be deducted from my ESA payments, then what's the point of taking one out?

The point might be that your ESA can be reduced if a loan is available, regardless of whether you accept the loan or not.

Talk to these people if the OU can't offer guidance:
https://www.disabilityrightsuk.org/how-we-can-help/helplines/disabled-students-helpline

Are you in receipt of PIP?

If not have you checked if ESA can still be paid. Is it the equivalent of a full-time course?

Most full-time students can't get income-related ESA, but you can if you're getting DLA or PIP.
If you study part-time it shouldn't affect your claim for income-related ESA (although be aware that being able to study part-time may indicate to the DWP that you can do a certain amount of work).

https://www.disabilityrightsuk.org/how-we-can-help/individuals/education/frequently-asked-questions-students
Would seem to confirm your calculation that your ESA will be reduced by £17pw.

Are you in receipt of HB - have you checked if this is also affected by any student loan?

Penguin90

Alice_Holt wrote: »

The point might be that your ESA can be reduced if a loan is available, regardless of whether you accept the loan or not.

Talk to these people if the OU can't offer guidance:
https://www.disabilityrightsuk.org/how-we-can-help/helplines/disabled-students-helpline

Are you in receipt of PIP?

If not have you checked if ESA can still be paid. Is it the equivalent of a full-time course?

Most full-time students can’t get income-related ESA, but you can if you’re getting DLA or PIP.
If you study part-time it shouldn’t affect your claim for income-related ESA (although be aware that being able to study part-time may show you can do a certain amount of work).

https://www.disabilityrightsuk.org/how-we-can-help/individuals/education/frequently-asked-questions-students
Would seem to confirm your calculation that your ESA will be reduced by £17pw.

I'll give them a call on Tuesday, thanks for the link.

Yes, I do receive PIP. It's a part-time course, studying at 25% rate.

So that £17 is definitely deducted from my ESA payment then? I thought it might be counted under the permitted work rule, but I guess not.

Alice_Holt

Penguin90 wrote: »

I thought it might be counted under the permitted work rule, but I guess not.

Interesting thought, but I don't think so. The helpline may be able to confirm.

Good luck with your studies.

poppy12345

Penguin90 wrote: »

So that £17 is definitely deducted from my ESA payment then? I thought it might be counted under the permitted work rule, but I guess not.

It's not permitted work, it's a loan.

Penguin90

Alice_Holt wrote: »

Interesting thought, but I don't think so. The helpline may be able to confirm.

Good luck with your studies.

Maybe it would be best if I didn't take out the maintenance loan at all? It seems to me that I wouldn't get much extra money, especially once I move up to 50% study next year (where I'd have double the maintenance loan, but more than triple the weekly deductions).

I believe there's a rule that says your ESA is deducted whether or not you take out the loan if you are entitled to it, but since I'm not automatically entitled to it, and I'm having to jump through all sorts of medical hoops to be eligible, maybe I could get under that rule?

Ezorqs

If ESA believe that you were eligible for a loan but didn't take it it's quite likely that they'll treat it as if you did anyway.

Getting "under" that rule, will have you charged with fraud. If you're able to take it, then take it. Please don't abuse the system, it is there to help those that need it, it is not there to top up students living expenses.

Penguin90

Ezorqs wrote: »

If ESA believe that you were eligible for a loan but didn't take it it's quite likely that they'll treat it as if you did anyway.

Getting "under" that rule, will have you charged with fraud. If you're able to take it, then take it. Please don't abuse the system, it is there to help those that need it, it is not there to top up students living expenses.

But that's the point, I don't know if I'm eligible or not until I apply - it's not an automatic thing, and if I decide I don't want the loan, it seems silly to apply for it.

Getting "under" the rule and "breaking" the rules are very different things. I don't want to break the rule or commit fraud - you think I'd be posting here if that was my intention - I just want to know if, all things considered, whether it might be best not to apply for the loan.

poppy12345

Penguin90 wrote: »

But that's the point, I don't know if I'm eligible or not until I apply - it's not an automatic thing, and if I decide I don't want the loan, it seems silly to apply for it.

Getting "under" the rule and "breaking" the rules are very different things. I don't want to break the rule or commit fraud - you think I'd be posting here if that was my intention - I just want to know if, all things considered, whether it might be best not to apply for the loan.

It maybe better to get some further advice regarding this loan. If you are eligible and don't apply and DWP find out you didn't take it. They will deduct the money, even if you didn't take it.

Prudent

I can't help with your original question, but I don't think you are either required to take the loan or treated as being in receipt of it anyway. My daughter is on IR ESA (support group) plus PIP (both rates enhanced). She is doing an OU degree, also part time. She keeps all her benefits and none are reduced because of the potential of a loan. I know she didn't take the loan, but can't remember the reason. Her housing benefit and council tax reduction have remained in place. She did discuss matters with the DWP before starting and keeps them up to date with information about her course. The OU have special advisers for disabled students and they have been very helpful. We are in Scotland and I am not sure if that makes a difference, other than not having to pay tution fees.

Alice_Holt

Prudent wrote: »

I can't help with your original question, but I don't think you are either required to take the loan or treated as being in receipt of it anyway. My daughter is on IR ESA (support group) plus PIP (both rates enhanced). She is doing an OU degree, also part time. She keeps all her benefits and none are reduced because of the potential of a loan. I know she didn't take the loan, but can't remember the reason. Her housing benefit and council tax reduction have remained in place. She did discuss matters with the DWP before starting and keeps them up to date with information about her course. The OU have special advisers for disabled students and they have been very helpful. We are in Scotland and I am not sure if that makes a difference, other than not having to pay tution fees.

Has your daughter contacted CPAG on their disabled students helpline?
This is from their factsheet I linked to - " If you are entitled to a student loan part of this will count as income, even if you choose not to take it."

Disability Rights have a book on Students and Benefits:
https://www.shop.cpag.org.uk/benefits-for-students-in-scotland-handbook-2017-2018

I'd suggest you get a copy through your local library to check if the advice she has had from the DWP is correct.

If the loan is for tuition fees then it does not affect ESA, if for living expenses then it does.