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Support for Graduating Students

Once you graduate you will no longer be a student and this means a completely new system of funding. Hopefully you will be able to get a full time job but if you find yourself out of work for a while you will be able to get support.

This page is aimed at students without dependants. If you have children and would like more detailed information please contact The Student Advice Centre. In addition it assumes that you will be the person claiming benefits. If your partner is claiming, please seek further advice.

Claiming Benefits

You cannot 'sign on' and claim any benefits until after your official leaving date in June.

The benefits mentioned here are means-tested; that is your income and any savings or capital you have will be taken into consideration. Generally for savings or capital over £6,000 but less than £16,000, income is £1 for every £250 of savings or capital.

Apply for benefits as soon as possible. You will not get backdated benefits unless you can show a good reason for not applying sooner.

Job Seekers Allowance (JSA)

There are two types of JSA; contribution based and income based. Contribution based does not take into account your income or capital but you need to have been making enough National Insurance contributions through paid work whilst you were studying. Most graduates only qualify for income based JSA. You qualify for income-based JSA if you meet all the following conditions:

•You are not considered to be a full-time student.
•You are aged 18 or over but under pension age (60 for women, 65 for men).
•You are habitually resident in the UK, Ireland, Channel Islands or the Isle of Man.
•You are in Great Britain.
•You are available for work and willing to take up work immediately, working at least 40 hours/week (there are some exceptions for people in special circumstances such as carers).
•You are actively seeking work.
•You enter into a jobseeker's agreement, which sets out the hours you have agreed to work, the type of work you are looking for and any restrictions on travel, pay etc (you discuss this when you make your initial claim but must remember that you cannot make unreasonable restrictions relating to travel and pay etc).
•If you are working, you are working for less than 16 hours per week (and your partner if you have one is working no more than 24 hours per week).
•You are capable of work or sick for up to two weeks.
•You are not subject to immigration control.
•Your capital is no more than the £16,000 limit described above.
•Your income is below the amount set for your basic living needs.

How to claim

You can apply online at www.dwp.gov.uk/eservice/ or visit your local Jobcentre plus. For Leeds, go to Jobcentre Plus, 35 Eastgate, LS2 7RE, Leeds, tel: (0113) 215 500. Alternatively call 0800 055 6688 (8.00am to 6.00pm, Monday to Friday) for further information. A textphone service is available if you have a speech or hearing impairment at 0800 023 4888.

You will be required to prove your identity and provide your National Insurance number. If you have a partner you will need to prove their identity and provide their National Insurance number.

How does it work?

You enter into a jobseekers agreement, which sets out the hours you have agreed to work, the type of work you are looking for and any restrictions on travel, pay etc. You discuss this when you make your initial claim but cannot make unreasonable restrictions.
You must attend the jobcentre once a fortnight to 'sign on' and discuss your situation, job seeking progress and any change of circumstances.
If it is believed that you are not available for and actively seeking work your payments could be suspended or stopped. Seek further advice from your local Citizens Advice Bureau.

How much?

The figures below are the applicable amounts for single people and for heterosexual couples co-habiting. Any income you have each week, e.g. from working less than 16 hours, is deducted from these amounts.

There are some income disregards, you can get more information about these from the Student Advice Centre or one of the government websites at the bottom of the page.

For benefit purposes same sex couples are not recognised and must therefore claim as individuals.

Single people	Couples
Age 18 to 24	£47.95	Both 18 or over	£94.95
Age 25 and over	£60.50

You still receive National Insurance contributions whilst claiming JSA.

Income Support

Some people will be eligible for Income support (IS) instead of JSA. You will not have to sign on or be available for work, but you will not receive National Insurance contributions. You can claim IS if you are on long-term sick, have a disability that seriously affects your capacity to work, you are a carer or have dependants under the age of 16.

How to claim

You can apply online at www.jobcentreplus.gov.uk or visit your local Jobcentre plus. For Leeds: Jobcentre Plus, 35 Eastgate, LS2 7RE, Leeds, tel: (0113) 215 500. Alternatively call 0800 055 6688 (8.00am to 6.00pm, Monday to Friday) for further information. A textphone service is available if you have a speech or hearing impairment - 0800 023 4888.

How much?

The amount you receive depends on your personal allowance, which is a fixed rate taking into account your age, family circumstances and whether or not you are disabled. The basic amount is the same as for JSA shown above. Contact the Student Advice Centre for more details or check the websites at the bottom of the page.

Housing Benefit (HB)

If you are a private tenant renting property or room from a private landlord and you are on a low income, you may be able to claim and receive Local Housing Allowance (LHA), which will be available from 7 April 2008. LHA is a new way of calculating Housing Benefit (HB) and is based on the area the customer lives, number of occupiers in the property and household size. LHA is a much fairer way of calculating HB, as it ensures that tenants in similar circumstances in the same area receive the same amount of financial support for their housing costs.
If you are already on HB you will not be affected unless you change address and move into accommodation rented from a private landlord then you will be moved onto LHA.

How to claim:

Go to http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018923 or visit your local Jobcentre plus. Alternatively call 0800 055 6688 (8.00am to 6.00pm, Monday to Friday) for further information. A textphone service is available if you have a speech or hearing impairment - 0800 023 4888.

Council Tax and Council Tax Benefit (CTB)

As of mid-June you will no longer be registered as a student at the University, so after that date you may be liable to pay Council Tax for the property you are living in.

To qualify for CTB you have to be on a low income and be liable to pay council tax. It is payable through the council and will be deducted directly off your bill.

How to claim

Go to http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018923 or visit your local Jobcentre plus. Slternatively call 0800 055 6688 (8.00am to 6.00pm, Monday to Friday) for further information. A textphone service is available if you have a speech or hearing impairment - 0800 023 4888.

Discounts

You will get a 25% discount if you are the only person in the house liable to pay Council Tax; regardless of your income.

Second Adult Rebate

Second adult rebate applies in very limited circumstances e.g. if you had an adult son or daughter who is on a low income and does not pay rent. If you claim CTB this is automatically assessed. If you think this may apply to you contact the Student Advice Centre. Find out more about council tax.

Repaying your Student Loan

If you started your course pre 1998 then contact the Student Advice Centre, or look at www.slc.co.uk for information relating to mortgage style loans. If you started your course after 1998 then you will not be expected to nake repayments on your loan until April after you graduate. Your employer will then deduct the money from your wages and pay this directly to the Inland Revenue to pay the Student Loan Company.

You will not have to start making payments until you earn £15,000 or more, and you will then make contributions of 9% of your salary above this amount. Examples are given below:

Gross income per annum	Monthly repayment
£16,000	£ 7
£20,000	£ 37
£25,000	£ 75

Coping financially with the change from being a student to a graduate

You may find you are a lot better off once you are working and be tempted to start spending a lot of money. However it is important not to become too reckless. It is still important to plan a monthly budget.
If you are entering postgraduate study, ensure you have the finding in place before you start, and let your bank know as they may continue your student account with its preferential terms. Some graduate bank accounts also offer preferential terms, including low interest loans.