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The scheme, introduced in April last year, provides a lump sum of £60,000 to the families of health or social care workers who have died as a result of Covid-19.
Eligibility for the payment in England is work-related and so concerns had been raised that students on unpaid placements during the pandemic would be exempt.
It was previously understood that families of students who died on unpaid placements were able to apply to health and social care secretary Matt Hancock for the payment and the expectation was that he would agree.
But Unite wanted the government to go further and called for students in unpaid placements to be explicitly named on the scheme.