Money Advice Service

There have been a number of changes to the benefits system. Some benefits are being replaced while others may have different rules for claiming them. This page tells you more about what’s happening.

Universal Credit

Universal Credit is a new simpler, single monthly payment for people looking for work or on a low income. It is replacing some of the benefits and tax credits you might be getting now. Whether you can claim depends on where you live and your personal circumstances.

Find out more about Universal Credit and how it might affect you in our guide Universal Credit explained.

Personal Independence Payment replacing Disability Living Allowance

Disability Living Allowance (DLA) has been replaced by a benefit called Personal Independence Payment (PIP) for people aged 16 to 64.

Find out more in our article Personal Independence Payment – an introduction.

Council Tax Benefit abolished

Council Tax Benefit was abolished on 1 April 2013. Local councils have brought in their own Council Tax Reduction Schemes to replace it.

How will this affect you?

If you’re a pensioner on a low income there is no reduction in the amount you get.

For everyone else, how you are affected depends on where you live.

Benefit cap introduced

If you’re aged 16 to 64, there is a limit on the total amount of benefit you can get. This is called a benefit cap.

Find out more in our article The benefit cap.

Housing Benefit cuts for social housing tenants

If you’re renting from a local authority, housing association or registered social landlord, then your Housing Benefit may be cut by 14% if you are considered to have one spare bedroom and by 25% if you have two spare bedrooms or more. This is often referred to as the ‘Bedroom Tax’, the ‘under-occupation penalty’ or the ‘removal of the spare room subsidy’.

Find out more in our guide Cuts to Housing Benefit for social housing tenants.

Changes to the Social Fund

Community Care Grants and Crisis Loans

Community Care Grants and Crisis Loans were abolished on 1 April 2013. They have been replaced by support provided by your local authority in England and the devolved administrations in Scotland and Wales.

Budgeting Loans

As people are being moved onto Universal Credit, Budgeting Loans are being replaced by a new system of Budgeting Advances.

Find out more about Budgeting Advances on the Citizens Advice website.

If you’re not yet getting Universal Credit you can still claim Budgeting Loans.

Find out more about Budgeting Loans from the Social Fund.

What you can do about the changes

If you’re affected by these benefit changes and you’re worried about managing on less money, the first step is to make sure you know exactly how much you have coming in and what you have to spend it on.

Every year your council is given a pot of money to help people in the short term who are having trouble paying their rent. The council decides who should be given what they call ‘Discretionary Housing Payments’

This article is provided by the Money Advice Service.