The Department for Work and Pensions (DWP) has confirmed plans to merge Pension Credit and Housing Benefit, a move set to simplify the claims process for millions of pensioners. The announcement, made on July 14, 2026, outlines a phased rollout beginning with an online claim channel for a small group of invited customers from autumn 2026.
Details of the Merger
The DWP states that by integrating the administration of pensioner Housing Benefit and Pension Credit, it aims to design a user-friendly service that encourages more pensioners to claim the financial support they are entitled to. The service will initially be available online for a limited cohort, with iterative improvements based on user feedback. Over time, it will expand to support all customers across multiple channels, including online, post, phone, and in-person options.
Pension Credit currently has over 1 million claimants and is worth up to £4,300 per year for retirees. The merger is expected to boost take-up rates by reducing the complexity of separate applications.
Collaboration with Local Authorities
The DWP emphasizes the importance of working closely with local authorities, who currently administer Housing Benefit. An established working group, including local authority representatives and seconded Housing Benefit processors, is already in place. The DWP notes: "Local authorities have participated in the research, testing and feedback of designs to ensure the new service works for both customers and colleagues who deliver services every day to pensioners. Local authority collaboration continues to be key in developing the new service."
Importantly, the DWP reassures that the new service does not replace existing decision-making responsibilities. Housing Benefit will remain with local authorities, and Pension Credit will remain with the DWP.
Impact on Claimants
The merger aims to make it easier for pensioners to claim additional financial support. By streamlining the process, the DWP hopes to increase the number of eligible pensioners receiving benefits. The pilot phase from autumn 2026 will test the online system, with full rollout expected after evaluation.
The DWP adds: "Over time, customers will be able to access the service in the way that best meets their needs, making it easier for pensioners to claim additional financial support." This approach is designed to accommodate varying levels of digital literacy and accessibility requirements.
