DWP update as plans to merge two major benefits confirmed

A new Department for Work and Pensions (DWP) scheme will see two major benefits joined together, affecting millions of claimants.

It comes after Labour confirmed goals to streamline benefit payments for some by simplifying complex rules that determine a claimant's eligiblity for different benefits. As part of the new rules, claimants of both Housing Benefit and Pension Credit are hoped to soon experience a more straightforward support system.

The scheme was first introduced by the Tory government in 2011 but faced significant delays. However, those aged over 66 will now receive a single benefit instead of separate payments while also potentially receiving more cash.

The DWP signed a deal worth nearly £1 million with tech giant IBM to advise on the digital aspects of the transition. IBM's online customer experience specialists will help design the new system as part of the four-month contract.

THe DWP also clarified that it will "work with Local Authorities to bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible." While Universal Credit has replaced Housing Benefit for many, pensioners remain one of the few groups eligible to apply for it separately.

Most now receive support through the all-encompassing Universal Credit system. It is believed around 760,000 pensioners who could be eligible for Pension Credit are currently not claiming it, thus missing out on an average of £3,900 extra each year.

Furthermore, Pension Credit could also make a claimant eligible for this year's Winter Fuel Payment which saw its eligiblity criteria cut down significantly so that only those claiming certain benefits could receive it. While work is expected to soon begin on the transition of