Students and Social Security Benefits

Abstract

Since the publication of the Goverment's White Paper, Top‐up Loans for Students in November 1988, public debate has been confined to the merits of the loans proposals. The proposal to exclude full‐time students from the social security system has been neglected in the media and in Parliament alike. This article examines the origins and development of this proposal from its first appearance in a DHSS Green Paper through to its appearance in the loans White Paper. The author looks at the Government's reasons for wishing to exclude students from the benefits system and uses Government statistics to build up a true picture of students' use of the social security system. He also places the proposal in the context of the Government's general social security and housing policies and concludes that the effect of the withdrawal of social security benefits from students will be to undermine the stated aims of the White Paper. If the loss of social security is greater than the ‘top‐up’ loan, then students dependency on their parents is likely to be significantly increased. Clearly this will affect students from low‐income families and students who cannot depend on their parents. It is possible that the withdrawal of social security benefits could be more important than the introduction of top‐up loans themselves.