some sort of fungus?

Howdy , ive had a potted aloe vera plant for some time now with no issues but recently i noticed it going a little purple / yellow edged - the leaves have also become more flacid and not plump like they used to be.
I pulled the plant out of the pot and noticed some whiteish yellow fluff around the top of the soil , in other areas of the soil such as inbetween the roots it appears as very small white dots

What am i dealing with here?
Heres a very bad phone picture

 

Could be root mealybug the recommended treatment by the rhs,treat pots with Bayer Provado Vine Weevil Killer 2 or Scotts Bug Clear Ultra Vine Weevil Killer - systemic insecticide compost drenches containing thiacloprid and acetamiprid respectively, may have some effect.

 

That looks pot-bound to me. The roots are probably getting too moist.

Succulents need very sharp drainage - re-pot it in a bigger pot, with sandy or gritty compost and lots of bits of crock at the bottom I would say.

I'm not an expert on succulents though, so if someone else comes along and confirms what I've just said I'll be well chuffed!