Financially independent
A child is considered to be financially independent when the child:
- is in full-time employment
- gets a Student Allowance or
- receives a benefit in their own right
Other situations where a child is considered to be financially independent
There may be other situations where all a child's financial needs (including the provision of accommodation and material needs) are being met by someone else or from some other source. For example:
- a family trust or
- the parent who is not acting as the principal caregiver
Date of review
Where a child becomes financially independent it should be excluded from the benefit payment from the start of the next pay period in which the child became financially independent.
There is discretion to continue payment for one payday following the event.
This discretion only applies when the exclusion of the child affects the rate of payment of Supported Living Payment and is generally used when processing deadlines have passed.
Family tax credit and Best Start tax credit
Stop family tax credit and Best start tax credit payments from the start of the next payday in which the child became financially independent, to avoid an overpayment (with Inland Revenue) for the client.
Not financially independent
Generally, receiving a Student Loan (including the living cost component) does not mean a child is financially independent.
For more information see:
- Effect on benefit
- Gets a Student Loan
- Processing standards Child changes [no link find out why]
Legislation
- Discretionary review of entitlement to, or rate of, benefit granted subpart 3 part 6, Social Security Act 2018
