The Department for Work and Pensions (DWP) is set to merge two benefits under the leadership of new Labour Prime Minister Andy Burnham. Mr Burnham has succeeded Sir Keir Starmer and reappointed Pat McFadden as DWP Secretary, ensuring continuity in welfare reforms.
Continuity in DWP Leadership
Despite a Cabinet shake-up, Pat McFadden remains Work and Pensions Secretary, while Torsten Bell continues as Pensions Minister. This suggests Mr Burnham's government will press ahead with changes previously announced under Sir Keir's premiership.
Merger of Pension Credit and Housing Benefit
Mr Bell confirmed that the merger of Pension Credit and Housing Benefit is still on the horizon. He stated: "Work is ongoing to deliver a new joined-up service for customers to apply for pensioner Housing Benefit and Pension Credit together." The aim is to design an easy-to-use service that enables more pensioners to receive the benefits they are entitled to.
Independent Age highlighted the issue: "Too many older people living on a low income do not receive the money they are entitled to, with almost 2 in 5 of those eligible for Pension Credit missing out." Reasons include lack of awareness, perceived shame, and complex application processes.
Implementation Timeline and Collaboration
The merger is expected from 2026, streamlining application processes to make support more accessible. Mr Bell added: "Local authorities have participated in the research, testing and feedback of designs to ensure the new service works for both customers and colleagues." He reassured that the new service does not replace current operational responsibilities: Housing Benefit will remain with local authorities, and Pension Credit with DWP.
