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

Martin Lewis, the finance expert
-Credit: (Image: Reach Publishing Services Limited)


Martin Lewis, the finance expert, has issued a three-word warning to DWP benefits claimants: "do not ignore". He has alerted thousands of individuals on benefits not to disregard an upcoming change that could lead to their payments being stopped.

Those receiving three significant "legacy benefits" should be vigilant for a letter from the Department for Work and Pensions. During his BBC podcast, Martin offered advice on how claimants can manage the transition to a new payment structure.

The Government introduced legislation in 2012 to merge six different benefits into a single, means-tested payment known as Universal Credit, as part of an overhaul of the benefits system. The new model was trialled in 2019 and officially launched in November 2022.

READ MORE: DWP bonus payment coming for all PIP claimants before Christmas

READ MORE: Communities Minister issues statement on Winter Fuel payment cuts ahead of vote

However, to prevent a "cliff edge" for those transitioning, ministers arranged for the process to be phased over several years.

This is referred to as "managed migration", allowing individuals who claimed the six benefits to keep them as a "legacy" for a short period, reports Birmingham Live.

Martin urged those affected to watch out for a crucial letter from the DWP, which will detail the necessary steps to receive it.

He said: "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 for a new application when transitioning to Universal Credit to verify eligibility.

Official figures disclose that in the last two years, the Department for Work and Pensions (DWP) has sent out upwards of 1.14 million migration notices. Yet, neglecting to finalise your application upon receiving a notice could result in the cessation of your benefits.

For all the latest news, visit the Belfast Live homepage here and sign up to our politics newsletter here.