Money
This page is all about money - managing your money, benefits for young peoplemoney for studying and .
If you need extra help, you could have a look at Funderfinder. This is a database of organisations that give money to help people in particular circumstances. You can use this at any of our main Connexions Centres.
Keeping in credit
To make sure you don’t run out of cash:
o Work out how much you earn each month.
o Draw up a budget showing all the things you spend your money on.
o If you are spending more than you have coming in, take action.
o If you need help working out your budget or talking through your financial situation, you can see a Connexions adviser.
Bank accounts
o Chances are you will need some kind of account if you start work, Apprenticeship or get an education maintenance allowance.
o There are two main types of account:
o Current Account - this is usually where your earnings will go and from where you take cash or write cheques to pay everyday bills.
o Savings Account - this is where you can save money.
o You can have telephone, web or branch accounts.
o Look around at what’s available and see what suits you best.
Money to work, seek work or unable to work
Bridging Allowance
If you are 16 or 17 and spent some time in work or training since leaving full-time education, you may be able to get Bridging Allowance for up to 8 weeks. This is currently £15 per week. You must be willing to take up a training place. You will need to go to your local Connexions Centre for a BA1 form.
Children’s Tax Credit
This is for people who are responsible for at least one child under school leaving age or a young person under 19 years old who continues in full-time education. (This does not apply to those on higher education courses). It now includes those on e2e and Programme Led Apprenticeships. The amount a parent gets depends on yearly income.
Housing Benefit & Council Tax Benefit
Your local council will deal with both these benefits.
Housing benefit helps with rent but does not cover all housing costs. It is sometimes called rent rebate or rent allowance. It is available to those who pay rent and are on a low income. It doesn’t matter if you do not get any other kind of benefits. If you are under 18, you do not have to pay council tax.
The rules for these benefits are complicated, so it is a good idea to get advice.
Income Support
Some young people may be able to get income support. This means you can get benefit and not have to sign on to look for work or training. For example:
· You are 16 or 17 and in relevant full-time education (course at level 3 or below) and have to live away from parents or anyone acting as parents; or
· You are a lone parent; or
· You are a disabled worker or student.
Job Seekers Allowance (JSA)/Severe Hardship
Most unemployed 16/17 year olds are not able to get benefits. There are a few exceptions, for example, if you have to live away from your parent(s) or will face severe hardship. You will need to go to your local Connexions Centre for a claim form first and then to Jobcentre Plus.
Working Tax Credit
This is for people who are in paid work for at least 16 hours per week. The amount you get depends on your yearly income. There is a childcare element within this, which means you may be able to get help with childcare costs.
Money for young people needing additional support
Direct Payments
What is a Direct Payment?
Some young people with a disability need help and support from health and social careChildren’s Services (social services). Direct Payments are a way of getting this help. Instead of health and social careChildren’s Services providing what you need, they give you or your parents the money and you arrange the services yourselves. This gives you more choice and control over the support and help you need.
What can you use a Direct Payment for?
A Direct Payment can be used for all or part of the support you need. The kinds of services you may buy with a direct payment are:
- Individual help from a support worker to go out or in your home.
- Respite care when you stay away from home to give your carers/parents a break.
- Support workers to live-in and provide support to help you live independently.
- Who can get a Direct Payment?
- If you are under 16, your parents can ask for a Direct Payment.
- If you are aged 16 or over, you can ask your social worker for a Direct Payment.
- Your social worker will talk with you to find out if you need help and support. (This is called making an assessment of your need).
- You will need to come to an agreement about how you will manage the money. You can get help with managing the money.
- You can get a Direct Payment for part of the support that you need and ask health and social careChildren’s Services (Social Services) to provide the rest. This is a good way of getting used to managing a Direct Payment.
Disability Living Allowance (DLA)
If you have mobility needs or care needs (you need someone to help you with day to day living), you may be able to claim Disability Living Allowance. It is available if you have needed help for at least 3 months because of severe physical or mental illness or disability and you are likely to need help for at least another 6 months. The amount you can get will depend on your particular circumstances.
Contact your local Benefits Agency/Jobcentre Plus.
Tax Credit (disability)
You may be able to get Tax Credit (disability), if you:
- have an illness or disability which puts you at a disadvantage in getting a job; and
- are restricted in the type of work, number of hours or amount you can earn because of your illness or disability.
Money to Study
Care to Learn
Young parents can get help with childcare costs of up to £155 per child per week between August and July. It’s available to young people who:
o Are under 20 years old; and
o start a course or training programme that receives some public funding; and
o live in England; and
o care for your own child/children; and
o use registered childcare providers.
Child Benefit
Your parent or carer can get child benefit until you are 19 if you are in ‘relevant education’. This means a full-time ‘non-advanced course’. Full-time means more than 12 hours per week. ‘Non-advanced’ means up to and including A-levels or other level 3 course.
Child benefit is now also available to your parent or carer if you are on e2e or a Programme Led Apprenticeship.
If you leave school at the end of Year 11 and are not in work or training, Child Benefit will continue until the beginning of September. Extended Child Benefit is available until the end of December if you have called into the Connexions Centre to say you are looking for work or training.
Education Maintenance Allowance (EMA)
EMA is a weekly allowance of up to £30 available to some young people who continue to stay on in full-time education (either at school or college) after year 11. It is now also available if you are on e2e or Programme Led Apprenticeship.
The amount you can get will depend on your family’s income and it is linked to attendance.
You may also be able to get bonuses of £100 if you stay on your course and make good progress.
You won’t lose out if you get money from a part-time job. And your parents won’t lose any benefits they get. Young people who get Income Support whilst studying can also get EMA on top of Income Support. Young people in ‘relevant education’ who live with foster carers, are in care or have left care can also apply for the full education maintenance allowance.
You can get an application form from your school, college or local Connexions Centre.
Fees for Courses
If you start a full-time course before you are 19 you do not normally have to pay tuition or exam fees. If you have been living in another country in the last three years, you will need to check if you have to pay fees. You will also have to pay fees if you go to a private school or college.
If you are older than 19 and get some kind of benefit from the Benefits Agency, you may not have to pay fees.
Higher Education
There’s a lot of talk about the cost of a university education. This is the information for students starting higher education in 2006 and it may change by the time you go to university.
H.E. Tuition fees
The Government plans tonow allows universities to charge up to £3000 per year tuition fees.from September 2006. They will add this to your student loan. The standard tuition fee will be around £1200. Universities that wish to charge more have to sign a special agreement.
H.E. Bursaries
Help with tuition fees will be available to students who receive the full maintenance grant (see below) and attend universities charging more than £2700 per year.
H.E. Student Loans
This is to help with the cost of everyday living expenses and the interest is linked to inflation. This means you would only repay in ‘real terms’ what you borrowed. You only start to pay back once you are earning more than £15,000 per year. There is a maximum amount you can borrow. For example, a student living away from home and starting a course outside London would be able to borrow up to a maximum of £4405 for the first year (depending on family income).
H.E.Higher Education Grants
These are new. They are aimed at students from low-income families. The grant is worth up to £2700 and the amount you get will depend on your family income. You would not have to repay this grant.
H.E. Disabled Student’s Allowance
If you have a disability or learning difficulty, you may be able to claim Disabled Student’s Allowance. Contact your local education authorityChildren’s Services Authority.
Income Support whilst studying
See ‘Money to work, seek work or unable to work’ section below.
Learner Support Fund (LSF)
If you stay on in further education after Year 11, you may be able to apply for LSF. This is to help with the cost of books, living expenses and transport. It can be paid on top of any EMA you may get. If you’re at college, see your student support counsellor; if you’re at school talk to your tutor or Head of Sixth Form.
Studying and part-time working
lf you’re still at school or college, you can work part-time to earn extra cash.