Financial expert Martin Lewis has issued a stark warning to DWP benefits claimants: “Do not ignore”. The money-saving guru highlighted an important change that could see thousands miss out on payments if overlooked.
Beneficiaries on key “legacy benefits” must watch out for communication from the Department for Work and Pensions (DWP). Delivering advice on his BBC podcast, Mr Lewis talked listeners through the steps needed for a seamless move to the new system of payouts.
To streamline social security, the Government in 2012 decided to combine six different types of benefits into one means-tested Universal Credit scheme.
After a series of trials throughout 2019, the reform was fully rolled out by November 2022.
To facilitate recipients’ adjustment to the modification, a gradual transfer spread over multiple years was plotted by officials. This method, known as “managed migration”, enables those on the historic six benefits to continue receiving them as “legacy” benefits for a while longer, as highlighted by Birmingham Live.
Stressing the importance of attentiveness, Mr Lewis underscored the necessity to look out for a crucial letter from the DWP detailing the switch-over procedures.
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 issuing letters to many, instructing them to apply to transition 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 submitting a new claim to prove eligibility when transitioning to Universal Credit.
Official data indicates that, in recent years, the Department for Work and Pensions has issued more than 1.14 million migration notices.
Failure to complete the application process following receipt of a migration notice could result in a loss of benefits.