DWP to merge two key benefits as it gives update on plans that will affect millions
Share:
THE Department for Work and Pensions will merge two key benefits as it issues an update on its plans that will affect millions of claims. The shake-up will combine pension-age housing benefit and pension credit into a single benefit, and the plans are now moving forward.
![[The merger is part of a wider government effort to simplify the benefits system]](https://www.thesun.co.uk/wp-content/uploads/2024/08/crop-28344943_b028de.jpg?strip=all&quality=100&w=960)
The move, first mooted in 2011 but repeatedly delayed, will see those over 66 receive a single, unified benefit, simplifying the system and potentially boosting uptake. However, progress is now being made and the DWP has signed a deal worth almost £1million with tech giant IBM to advise on the digital transformation required for the merger.
The four-month contract, which could be extended, will see IBM's online customer experience specialists help design the new system. This involves mapping out the current process and working with stakeholders to create a more user-friendly experience. The merger is part of a wider government effort to simplify the benefits system.
Ministers hope the merger will ensure more pensioners receive the financial support they're entitled to. An estimated 760,000 eligible pensioners are currently missing out on pension credit, worth an average of £3,900 a year. This extra income is more vital than ever following changes to the winter fuel payment.
This is because only pension-age households receiving certain benefits, including pension credit, are eligible for the payment. It is hoped the new merged pension credit and housing benefit system will be in place from 2026, two years earlier than previously planned.
