The case studies below broadly cover some of the enquiries and financial concerns presented by students on extended paid clinical placements. However, it's important to note that all students will present with a slightly different set of circumstances. If you are still unclear about the impact starting a placement will have on your benefit entitlement, please email welfare.service@rcn.org.uk and an adviser will call you back to discuss your personal situation.
Case study 1: Single parent claiming Tax Credits
Cai is a third-year student nurse in London. He is a single parent with two young children. Cai is pleased to have been offered an extended paid clinical placement by his university to work on a medical ward. He is about to sign a contract to say that he will be paid at band 3.
Cai has already arranged for his children to stay with their grandparents during his placement. This is huge change for the family. Cai has been financially independent and has been receiving his student funding as well as Child Tax Credit and Child Benefit during his course. He is now wondering what will happen to his benefits when he is doing his placement and what will happen when he returns to his course in his final year.
As Cai is currently receiving Child Tax Credit, once he starts his paid placement, he will need to ask the HMRC to recalculate his entitlement. Whilst his earned income will increase, since he is working more than 16 hours a week, he would also be eligible to claim to claim Working Tax Credit, so his entitlement wouldn’t necessarily go down.
His entitlement would depend on his income, on whether he is working more than 30 hours a week and how long his placement continues.
As tax credits are an annual means-tested benefit, Cai should notify the HMRC of a change in income both at the start and end of his placement. This will ensure he avoids a potential overpayment at the end of the financial year. He should also notify the HMRC within four weeks of any relevant change.
How to notify HMRC of relevant changes
You can notify the HMRC by post, email or phone. For further details of how to do this please see Report changes that affect your tax credits on the gov.uk website.
Case study 2: Student currently claiming Universal Credit
Sonja is a third-year student. Sonja has been offered an extended paid clinical placement. Sonja’s partner is caring for their young child whilst Sonja is at University and will continue to do so whilst she undertakes her placement.
Before she starts her placement, the family are keen to know what will happen to their benefit entitlement.
They are currently receiving Universal Credit to assist with their rent. Sonja wants to know if she will continue to receive this support, and if not, what will happen to her Universal Credit when she returns to her course.
Sonja will continue to receive her funding and if she decides to take up the placement, her new salary. As Universal Credit is a means-tested benefit and takes into account the family’s combined income, her Universal Credit would be recalculated. Depending on the hours she undertook in the assessment period her family might continue to receive a reduced amount of the housing element of Universal Credit, as she would now qualify for a Work Allowance element of Universal Credit.
For further details of the Universal Credit work allowance please see the government's guidance on Universal Credit work allowances on the gov.uk website.
If Sonja's income went above a certain threshold for her assessment period, she would lose her Universal Credit. She sought advice from the RCN Welfare team, who calculated that despite the loss, Sonja would still be financially better-off during her placement. This is because she would receive her salary as well as her student bursary funding. Based on these figures, Sonja decided to go ahead with the placement.
When her placement ends, Sonja may continue to receive Universal Credit. The rate she receives will depend on whether she starts work or has a break between her first substantive post.
How to notify Universal Credit of relevant changes
You can notify the DWP (Department for Work and Pensions) using your on-line journal. See Sign in to your Universal Credit account on the gov.uk website.
Case study 3: Single parent not currently claiming any benefits
Ingrid is a third-year student. She has been offered an extended paid clinical placement. Ingrid and her teenage daughter normally live with her parents, so only qualify for Child Benefit.
However, due to her father having received a shielding letter, if Ingrid takes up the placement, she will need to move to a rented apartment near the hospital to protect her father.
Before she agrees to start her placement, Ingrid wants to know if she can apply for any financial support.
As Ingrid now must now pay rent, she was advised by the RCN Welfare team that she could make a new claim for Universal Credit. Universal Credit would take into account her student bursary income and her salary for the relevant period. However because she is a single parent and in work, she would qualify for the Work Allowance, and also some Universal Credit housing cost element towards her rent.
How to make a new claim for Universal Credit
If you believe your circumstances have changed so that you might now qualify for Universal Credit you can claim either online or by calling the DWP (Department for Work and Pensions). Due to increased demand on Universal Credit, it's strongly advised to Apply for Universal Credit online on the gov.uk website.
Case study 4: Parent with additional childcare costs
Tom is a third-year student. He has been offered an extended paid clinical placement. Tom lives with his wife and their two-year-old twins.
Tom’s children only usually attend nursery for a few hours a week as they are usually looked after by his mother-in-law when he is on placement and his wife is working. But due to his mother-in-law currently shielding, if Tom takes up the placement, they will need to use a full-time nursery place for the twins.
Before he agrees to start his placement, Tom wants to know if he can apply for any financial support.
As Tom and his wife both work, one of the options they have is to apply for the childcare element of Universal Credit. They can only make a claim for childcare if they are not claiming a Childcare Allowance. Universal Credit would take into account Tom's student bursary and reduced rate loan income, and the family's combined salary for the relevant period. Tom took advice from the RCN Welfare team, who calculated that he and his wife could still qualify for some Universal Credit due to their new childcare costs.
How to make a new claim for Universal Credit
If you believe your circumstances have changed so that you might now qualify for Universal Credit you can claim either online or by calling the DWP (Department for Work and Pensions). Due to increased demand on Universal Credit, it's strongly advised to Apply for Universal Credit online on the gov.uk website.