The Pension Service and the Disability and Carers Service are to be brought together into a single Agency - the Pension, Disability and Carers Service.

The government explains that two existing agencies increasingly share many of the same customers and over time the new agency will enable a better and more seamless service to be delivered to them.

Peter Hain, the Secretary of State for Work and Pensions, says: "This is a big step forward for our Department and its customers. The new agency will help us to give many more of them the services and support they need through one organisation in a joined up way."

The new agency will come into existence on 1 April.