Recent changes to the benefits system

Some welfare benefits have changed over the past few years. Find out how they've changed and if this affects you.

Introduction of Universal Credit

Universal Credit has been rolled out nationally and now replaces new claims for a number of working age benefits (benefits for people under State Pension age). If you still get income-related Employment and Support Allowance, you'll be invited to claim Universal Credit by the end of 2025.

If you receive a letter inviting you to claim Universal Credit, your Employment and Support Allowance may stop if you don't claim before the date in the letter.

If you're thinking of switching to Universal Credit before you receive a letter asking you to, it's a good idea to seek professional advice first – in some circumstances, you may end up worse off.

If you’ve reached State Pension age, you won't be affected unless you're a couple and your partner is below this age. This is because claims for Pension Credit can normally only be made if both partners in a couple are over State Pension age.

Check what your State Pension age is on GOV.UK

Changes to Pension Credit

Following the phase-out of Child Tax Credit, Pension Credit now includes additional amounts for dependent children.

Pension Credit and Housing Benefit will be brought together at some point in 2026.

Find out more about Pension Credit

Changes to bereavement benefits

Bereavement benefits have been extended – you no longer need to have been married to or in a civil partnership with your partner to claim Bereavement Support Payment (BSP). If you have a child or children and were living with your partner when they died, then you can now claim BSP.

The law changed on 9 February 2023. If your partner died before that date you can now make a claim for BSP or Widowed Parent’s Allowance and you may receive some backdated benefit.

Find out more about Bereavement Support Payment

Personal Independence Payment and Disability Living Allowance

For new claimants, Personal Independence Payment (PIP) has replaced Disability Living Allowance (DLA). Here’s how you could be affected if you currently get DLA:

• If you were under 65 on 8 April 2013, you'll be reassessed for PIP at some point in the future.
• If you were over 65 on 8 April 2013, you'll continue to receive it for as long as you're eligible.

Find out more about Personal Independence Payment (PIP)

Changes to Support for Mortgage Interest

Support for Mortgage Interest (SMI) provides loans that pay towards the interest on a mortgage or other eligible home improvement loan.

If you claim SMI, it may not pay all of your interest and won't pay towards capital repayments. This means you might also need to make an additional payment. The loan is voluntary and it's usually repaid with interest if you die or sell your home.

Find out more about Support for Mortgage Interest loans

Housing Benefit reductions and the ‘bedroom tax’

Housing Benefit is reduced if you're considered to have more bedrooms than you need in your home. This is sometimes referred to as the 'bedroom tax'.

This could affect you if all of the following apply to you:

• you’re under State Pension age
• you rent a property from your local council or a housing association
• you have more bedrooms than you need.

Or if both of the following apply to you:

• you’re a mixed age couple (one of you is over State Pension age and one of you isn't)
• you claim Universal Credit.

Find out more about Housing Benefit

How could the benefit cap affect me?

There's a cap on the amount you can claim if you’re not working. The cap depends on whether you're single or a couple and where you live. 

What is the benefit cap in Greater London?

• If you're a couple (with or without children), or single with a child of qualifying age, the cap is £25,323.
• If you're a single adult household without children, the cap is £16,967.

What is the benefit cap in the rest of the UK? 

• If you're a couple (with or without children), or single with a child of qualifying age, the cap is £22,020.
• If you're a single adult household without children, the cap is £14,753.

Whether you live in Greater London or the rest of the UK, you may be affected if you’re under State Pension age, or if you’re over State Pension age but live with a spouse or partner below State Pension age and you or your partner claims income-related Employment and Support Allowance or Universal Credit.

The cap doesn't apply if you receive any of the following:

• Attendance Allowance
• Carer's Allowance
• Disability Living Allowance
• Personal Independence Payment
• ESA support component
• War Widow(er) Pension.

If you're over the cap, your Housing Benefit or Universal Credit payments may be reduced.