Martin Lewis tells DWP benefits claimants to 'watch out for letter' or face money chop

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Martin Lewis, the financial expert, has issued a stark three-word warning to DWP benefits claimants: "do not ignore". He is alerting thousands of individuals on benefits about an important change that could lead to them losing their payments if overlooked.

Those receiving key "legacy benefits" should be vigilant for correspondence from the Department for Work and Pensions. On his BBC podcast, Martin offered advice on how to manage the shift to a new benefits system.

In a bid to streamline the welfare system, the Government, in 2012, introduced a plan to merge six different benefits into one means-tested payment, Universal Credit. After pilot schemes in 2019, this system was fully rolled out in November 2022.

To ensure a smooth transition, ministers decided to phase the process over several years, a strategy known as "managed migration". This allowed claimants of the six original benefits to continue receiving them temporarily as "legacy" payments.

Martin emphasised the importance of paying attention to a critical letter from the DWP detailing the steps to switch to Universal Credit, reports Birmingham Live.

He warned: "On tax credits, housing benefit, ESA or similar? Don't ignore the crucial letter - you could lose your benefits." The Department for Work and Pensions is sending letters to many people saying you must now apply to switch to Universal Credit."

"Don't ignore it - tragically, DWP stats show a third have had benefits cut off after not applying." This is due to the requirement of filling out a new application to confirm eligibility when switching to Universal Credit.

Over the past two years, government data shows that the DWP has sent out over 1.14 million migration notices. However, if you don't complete your application after receiving a notice, your benefits could be at risk of being stopped.