Is returning to education a “change ion circumstances” that will put me on UC rather than tax crdits

nicdigby

Hi
Have a pipe dream to return to full time education, (an access course and then a PGSE teacher training course in one of the sought after subjects) . But I am worried that this decision if made could roll me from CTC onto universal credit - the latter of I won’t qualify for due to having some savings just above the threshold.

1) is return to education (full or part time) counted as a change of circumstances that you have to report to child tax credits people AND that would result in them saying that change of circumstances means I now have to go onto UC instead? (I am in a full roll out area)

2) if I received a “tax free” bursary of eg £26k for doing a pgse, does receipt of this then put me above the child tax credits income threshold?

3) I’ve read that I can indeed continue to claim CTC and cont based ESA while in full time education - can anyone correlate or contradict this?

Many thanks

SweetPotatoPie

I can only answer one of your questions. A bursary is not a salary so you would not qualify for any working tax credit. You would be classed as a full time student so would only be eligible for the child tax credit element.

abbiesmom

I wouldn't expect you to qualify for anything other than CTC as you'd be expected to take your entitlement to student loans and grants, I don't know if this would trigger a move to UC though. You will however have student exemption from CT as a full time student.

w06

I don't know about tax credits, certainly for ESA and UC you'd be expected to tell them that you're now a student. Student loans, whether taken or not, and bursaries are considered income for benefit purposes (ESA and UC). It's a complex area with UC having seemingly forgotten that they need a means to assess disabled students.

The bursaries for training to teach sought after subjects require you to have at least a 2:1 in a degree relevant to that subject (usually in that subject) or a Masters or PhD, and so after your access course you'd need to do a bachelors degree as well. To train without a bursary you'd also usually need a degree https://getintoteaching.education.gov.uk/eligibility-for-teacher-training

calcotti

1) You would continue to be eligible for Child Tax Credits - this is not a change that would end your claim.

3) You can continue to receive contribution based ESA as a student. Remember that this counts as income when calculating tax credits.

Not sure about the answer to 2) - £26,000 sounds like a very high bursary. You could try the calculator https://www.gov.uk/tax-credits-calculator

calcotti

abbiesmom wrote: »

I wouldn't expect you to qualify for anything other than CTC as you'd be expected to take your entitlement to student loans and grants, I don't know if this would trigger a move to UC though. You will however have student exemption from CT as a full time student.

Student loan income is ignored for tax credits https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-tax-credits

nicdigby

Thank you Calcotti. Please do you have a link to the legislation that states that receiving a teaching shortage subject bursary will not end my CTC claim ? Many thanks

[Deleted User]

nicdigby wrote: »

Thank you Calcotti. Please do you have a link to the legislation that states that receiving a teaching shortage subject bursary will not end my CTC claim ? Many thanks

A bursary is not a wage nor will you be working (unless you keep your job part time etc) so your working tax credit would end.

Though unless you already have a degree you should get focused on that as you won't get on a PGCE or get the bursary without it.

w06

do you already have at least a 2:1 in one of the shortage subjects nicdigby?

calcotti

nicdigby wrote: »

Thank you Calcotti. Please do you have a link to the legislation that states that receiving a teaching shortage subject bursary will not end my CTC claim ? Many thanks

If you have primary responsibility for the care of a child you continue to be eligible for Child Tax Credits. Whether or not the bursary income will end your entitlement to receive anything once the calculations are done I am not sure.

there's an HMRC guide to Tax Credits here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787912/WTC2_2019.pdf

Unfortunately I cannot see anything about student bursaries in it.

w06

With PGCE you're also entitled to usual student finance and so income would be considered the bursary plus maintenance loan for UC and ESA (an additional ~10k potentially), not sure how it's worked out for tax credits.