The Government has announced plans to change the way video games will be rated in the UK.

It has said it will now use the Pan European Game Information (PEGI) system to help consumers understand which games are suitable for different ages. The British Board of Film Classification (BBFC) will no longer actively review and rate games prior to their release.

The organisation said it will "co-operate fully" with the legislative changes needed to put the new classification system in place.

The decision was announced as part of the government's Digital Britain review. It follows a consultation where consumers were asked their opinions on the best possible way of displaying age and content classifications.

In his Digital Britain report, Lord Carter wrote that "PEGI has the flexibility required to adapt to the challenge of rapidly-evolving technology in the games sector and will be highly effective in the online world".

Child psychologist Tanya Byron, who last year carried out a Government-commissioned report suggesting the need to clarify video game content, said the announcement was a “really great decision.”

She said the previous two-tier system was confusing to parents as it used both PEGI, which rates games as suitable for ages 3+, 7+, 12+, 16+ or 18+ as well as using a number of icons to indicate content such as sex or violence, and ratings by the (BBFC).

As with films, these were given an age rating of 18, 15, 12, PG (Parental Guidance) and U (Universal).

The decision has also been welcomed by the software industry. Mike Rawlinson , director general of the Entertainment and Leisure Software Publishers Association (ELSPA), said: “The Government has made the right decision for child safety. Retailers will now have clear, legal backing to help them prevent access to unsuitable content by children.”

No implementation date has been announced but the Government said it would begin working with the games industry in the near future.