DWP to 'merge' two benefits in move that will impact millions

The Department for Work and Pensions will merge two key benefits in a move that will affect millions. The shake-up will combine pension-age housing benefit and pension credit into a single benefit, the DWP has confirmed.

The move will see those over 66 receive a single, unified benefit, simplifying the system. In signing a new £1 million deal with IBM to get the ball rolling, the DWP is tasking the tech company with helping it to "explore and identify the best strategic solution for bringing together the administration of Housing Benefit and Pension Credit," according to the contract.

In Pension Credit guidance issued in September, the now Labour Party government-run DWP promised to finally make the steps to simplify benefits received by people over the pension age as we head deeper into their government.

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The department stated: "We will work with Local Authorities to bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible." The £1m deal with IBM appears to aim to solve the deadlock that has affected the long-awaited plans to simplify the way pensioners receive support for their housing costs.

Public Technology has reported document relating to the deal's as specifying: “Highly-skilled service design practitioners will lead the planning and execution of these activities... The power in this approach lies in bringing together core teams of experts to understand services and identify the ‘right thing to do’, before engaging with execution capabilities, to do the ‘thing right’.”

You can apply for housing benefit directly with your local council. Find yours by visiting gov.uk/apply-housing-benefit-from-council. You can also apply for housing benefit as part of a pension credit claim. You'll need to provide some information and evidence to support your claim for housing benefit.

You'll get housing benefit faster if you have this available when you make your claim.