The new single rating system replaces the current model featuring both BBFC and PEGI classifications.
The Video Standards Council will rate the games under PEGI's guidance, as well as ensuring that retailers comply with the new system, reports the BBC.
Retailers caught selling games to under-age customers will face potential jail time, although the ratings do not apply to games purchased online.
The news comes three years after a government report favoured PEGI ahead of the BBFC in the battle to provide a simpler rating system.
PEGI was also backed by a member of the European Parliament when the debate began in 2009.
Commenting on the changes to the system, Creative Industries Minister Ed Vaizey said: "It will give parents greater confidence that their children can only get suitable games while we are creating a simpler system for industry having their games age rated."
Other organisations such as UKIE believe that it will provide "much-needed clarity for consumers", a view echoed by Tiga who believe that "it simplifies the system."
The changes are expected to be implemented in July, although an exact timeline is yet to be decided.