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Pay money to a student

If you are making a parental contribution to a student then part of your income is not counted when calculating some benefits to take account of this. This rule does not apply to Universal Credit.

If your contribution has been worked out as part of the student's Local Authority grant then any amount you contribute will not be counted as your income (up to a limit). The amount is calculated to cover the student's period of study, which excludes the long summer vacation.

If the student does not get a Local Authority grant some £5 of your weekly income will be 'disregarded' because you are giving them money to live on, so long as you give it in the form of a covenant. A covenant is a legally enforceable promise to pay money to someone, usually entered into for tax relief. The assessment of covenant income only applies where the income is paid under a deed of covenant to a full-time student by a parent.

Enter the full amount you pay to the student(s) and the calculator will automatically deduct the appropriate disregard.