First-order Hamiltonian operators of hydrodynamic type were introduced by Drubrovin and Novikov in 1983. In 2D, they are generated by a pair of contravariant metrics g, and a pair of differential-geometric objects b, . If the determinant of the pencil vanishes for all λ, the operator is called degenerate. In this paper we provide a complete classification of degenerate two- and three-component Hamiltonian operators. Moreover, we study the integrability, by the method of hydrodynamic reductions, of 2+1 Hamiltonian systems arising from the structures we classified.