Welfare Reform Information - Benefit Changes

The welfare system has undergone significant changes in recent years, particularly for people of working age. Most of these changes do not affect people who have reached State Pension age, although there are some exceptions.

The reforms have changed how some benefits are claimed and paid, introduced Universal Credit for many working age claimants, and updated the rules for eligibility and entitlement across a range of benefits.

These changes are intended to simplify parts of the benefits system and encourage employment while providing financial support to those who are eligible.

Removal of the two child limit

From 6 April 2026, the two child limit was removed for both Universal Credit and working age Housing Benefit.

Previously, support for children was limited to the first two children in most cases, unless an exception applied. Following this change, eligible families can now receive support for all dependent children, regardless of when they were born.

If you receive Universal Credit, any increase to your award will normally be applied automatically from your first assessment period starting on or after 6 April 2026.

If you receive working age Housing Benefit, the change will also be applied automatically, and all eligible dependent children will be included when your entitlement is calculated.

If you think you are affected by this change and your benefit has not been updated, contact your Universal Credit Department if you receive Universal Credit, or the City Council if you receive Housing Benefit.

Changes to benefits for mixed-age couples

A mixed-age couple is where one partner has reached State Pension age and the other has not.

Since 15 May 2019, most new claims from mixed-age couples must be made for working age benefits, such as Universal Credit, rather than Pension Credit or pension age Housing Benefit.

If you are already receiving Pension Credit or pension age Housing Benefit and have remained entitled to those benefits since before 15 May 2019, these changes do not affect you.

Where a mixed-age couple receives Universal Credit, the partner who has reached State Pension age is generally not required to meet work related requirements.

More information on benefits for mixed-aged couples.

Under occupancy in social housing (also known as the Bedroom Tax or Spare Room Deduction)

If you rent your home from a social landlord and receive Housing Benefit or the housing costs element of Universal Credit, the amount you receive may be reduced if you are considered to have more bedrooms than your household needs. This is commonly known as the Bedroom Tax or Spare Room Deduction.

The under-occupancy rules generally do not apply if you or your partner have reached State Pension age.

If the rules apply, your eligible housing costs may be reduced by:

• 14% if you have one spare bedroom
• 25% if you have two or more spare bedrooms.

If you believe the rules have been applied incorrectly, or your circumstances mean you need an additional bedroom, you may be eligible for an exemption, a Crisis and Resilience Fund Housing Cost Payment, or other financial support.

For advice, contact the City Council if you receive Housing Benefit, or your Universal Credit service centre if you receive the housing costs element of Universal Credit.

Council Tax Support Scheme

If you are on a low income or receive certain benefits, you may be eligible for help with paying your Council Tax through the Council Tax Support Scheme.

Find out more more information about eligibility and how the Council Tax Support Scheme works.

Housing Benefit

If you receive Housing Benefit, you can find information about eligibility, entitlement, and recent changes in our Housing Benefit section.

Latest information about Housing Benefit and how it may affect you on the GOV.UK website.

If you need advice about your Housing Benefit claim or recent changes to the scheme, please contact the City Council.