Everyone should have financial security so that they can not only survive, but also thrive- and sometimes that means receiving extra help in the form of benefits. This can be especially true when you are a parent and trying to make your business a success. Benefits really can be your safety net.
If you are a parent and you are receiving support in the form of benefits- from Universal Credit through to Housing benefit – it is vitally important to be aware -in advance- of the changes to those benefits that you receive when your child is leaving or about to leave approved education.
Through our years of working with entrepreneurs and parents we know first hand that this is an issue that comes up time and time again- but don’t worry, we’ve pulled together the most common questions and concerns around benefits and children post 16 – factual information so that you are prepared and can plan.
When does my child become a qualifying adult?
Between your child’s 16th and 20th birthdays, the benefits system will start to view them in some respects as an independent adult. This is usually in relation to their continuing or leaving school. When they do leave formal / approved education the benefits you get for them will stop.
Will my benefits stop when my child turns 16?
Your benefits will usually stop on the 31st of Aug after a child turns 16. If your child is in full-time approved education or training, you can still claim for them until they are 19, or in some cases 20.
It is important to note that Child Tax Credit will also stop automatically when your child turns 18 or 19, unless you tell HM Revenue and Customs (HMRC) that they are in approved education or training.
For universal credit, when your child reaches age 16 they become a qualifying young person and can be included in a universal credit claim up to (but not including) the 1st September following their 16th birthday. After that the rule is slightly different to tax credits because, provided they remain in full-time non-advanced education or approved training and they were enrolled on, or started, the course before they were 19, they can only be included up to (but not including) the 1st September following 19th birthday.
What is approved education?
Approved education or training can include:
- GCSEs,
- A/AS levels
- National diplomas
- NVQs up to level 3
- Apprenticeships or traineeships.
If your child is staying in approved education or training for more than 12 hours each week, your benefits won’t be affected.
You can find information about what counts as approved education or training on the GOV.UK website at www.gov.uk.
The education must be non-advanced, so studying for a degree at university doesn’t count. Your child must be accepted onto an approved course or training before their 19th birthday to be eligible.
As long as they are registered on the course before they turn 19, your benefits related to them can continue until their 20th birthday.
It’s important to note that they can be working while they’re studying and that you must let the various benefits offices know about what your child is doing.
What if my child is leaving education?
When your child leaves approved education or training – whether that’s to work or go university (higher education), they’re no longer seen as your dependent. This will have an effect on the various benefits you may be receiving.
Universal Credit:
When your child leaves approved education OR leaves home, you will no longer qualify for the child element of Universal Credit related to them and the housing element of your Universal Credit claim may also be affected.
You can check how this will affect you specifically using this benefits calculator.
You must let Universal Credit know about your child leaving education or training. If you don’t tell them about this change, your benefits may be overpaid and they’ll ask for the money back leading to debt and or sanctions so this really is vitally important. You can do this through your online account or by calling them on 0800 328 5644.
Working Tax Credit:
This will stop unless you’re working 30 or more hours each week. This is a change from the 16 hours a week requirement when you have a child. If you’re disabled, you only need to be working 16 hours a week to qualify for Working Tax Credit, even when your child leaves education.
Working Tax Credit and Child Tax Credit are part of the same system, so you just need to let HMRC know about your child’s plans once.
Housing Benefit:
You must also let your local council know when your child leaves approved education or training. When your child no longer counts as your dependent, you may get less support for your housing costs.
As long as your child is living with you as a full-time student (at any level), they’ll be ignored for the purposes of Council Tax.
Where you can go for expert independent advice-
Big Local Works– We are BIG fans of Big Local Works. They are experts at benefits advice and information and provide essential Welfare Benefits support and offer a confidential 121 service covering:
- Universal Credit
- Personal Independence Payments (PIP)
- ESA, DLA, Freedom Pass.
- We also attend Assessment Centres and Tribunal Hearings
Norma runs weekly drop in sessions on a Wednesday at our Thrive coworking space. To book your slot Drop an email to norma@biglocalworks.org.uk
Gingerbread Advice and support services to help you get the right support when and where you need it most.
Citizens Advice Their Help to Claim advisers can help you with the early stages of your Universal Credit claim. You can talk to them on the phone, online over chat or using our British Sign Language (BSL) service.
Their advisers can help you:
- work out if you can get Universal Credit
- fill in the Universal Credit application
- prepare for your first Jobcentre appointment
- check your first payment is correct
Shelter believes that home is a human right. It’s our foundation and it’s where we thrive. Yet, every day millions of people are being devastated by the housing emergency. Shelter is there for you to defend the right to a safe home. Because home is everything.
