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Changes to the benefit system

You may have heard that some welfare benefits have been changing in the last few years. Find out on this page how these changes might affect you.

The introduction of Universal Credit

Universal Credit is being rolled out nationally and will replace a number of benefits for people of working age - i.e. people younger than the minimum age to claim Pension Credit. 

You’ll eventually be transferred to Universal Credit if you already claim any of the following:

If you’ve reached Pension Credit age, you may not be affected unless you are part of a couple and one of you is below this age.

Find out more about Universal Credit

Changes to Pension Credit

Here are some of the things that may change with Pension Credit, although it’s not clear when these changes will take place.

  • As Housing Benefit is being abolished, Pension Credit will include a new housing credit to help towards rent.
  • As Child Tax Credit is being abolished, Pension Credit will include additional amounts for dependent children.
  • There may be a new savings limit for Pension Credit. There is currently no savings limit.

Find out more about Pension Credit

Changes to bereavement benefits

Bereavement Support Payment has replaced the old system of bereavement benefits for bereavements happening from 6 April 2017.

You may be entitled to Bereavement Support Payment if:

  • Your husband, wife or civil partner died on or after 6 April 2017
  • The deceased person paid National Insurance contributions or died because of an accident at work or a disease caused by work
  • When they died the surviving partner was under State Pension age.

Find out more about Bereavement Support Payment

Personal Independence Payment (PIP) is replacing Disability Living Allowance (DLA)

Personal Independence Payment (PIP) has replaced Disability Living Allowance (DLA) for new claimants.

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

Find out more about Disability Living Allowance

Changes to Support for Mortgage Interest

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

On 5 April 2018, SMI benefit will end and from 6 April, SMI loans will be introduced. This means that from 6 April 2018, if you claim SMI you'll need to make sure that you pay interest on your mortgage or home improvement loans, either yourself or using the loan. The loan is voluntary and you have the choice to accept it or not.

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 has been called the 'bedroom tax'.

This could affect you if the following apply to you:

  • you’re under Pension Credit age and,
  • you rent a property from your local authority or a housing association and,
  • you have more bedrooms than you need.


  • you’re a pensioner and have a younger partner, and claim Universal Credit.

Find out more about Housing Benefit

How the benefit cap could affect you

There is a cap on the amount of benefits you can claim if you’re not working. The cap is to £23,000 in London and £20,000 elsewhere.

You may be affected if you’re under Pension Credit age, or if you’re over 63 and live with a spouse or partner below that age and:

  • you or your partner claims Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance (ESA)
  • you or your partner claims Universal Credit.

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

Initially the cap reduces Housing Benefit payments, but in future any deduction will be through Universal Credit.

What you should do next

What extra money are you entitled to?

On average, our benefits calculator identifies an extra £250 per month for each person. How much money could you claim?

Find more information with our useful guide

For more information call Age Cymru Advice on 08000 223 444

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