Martin Lewis issues benefits ‘cut-off’ warning if people don’t act | Personal Finance | Finance
Martin Lewis has sounded the alarm over a flurry of letters dispatched by the Department for Work and Pensions (DWP).
He urged recipients not to dismiss the correspondence, warning that failing to comply with its contents could result in a total stoppage of their benefit payouts.
In his BBC podcast, the Money-Saving Expert cautioned listeners during the closing segments: “An important one for anyone on tax credits, housing benefit, employment support allowance or similar; do not ignore a crucial letter that is coming, you may lose your benefits.
“The Department of Work and Pensions is sending letters to many people saying you must now apply to switch to Universal Credit from your current system. Do not ignore it.”
Those affected include beneficiaries of all six legacy aids specifically, individuals receiving Child Tax Credits, Working Tax Credits, Housing Benefits, Income-based Jobseekers Allowance, Income Support, and Income-related Employment and Support Allowance.
The letters detail the upcoming transition to Universal Credit and outline essential actions recipients need to undertake as part of the migration process.
DWP data has revealed that over a third of claimants have had their payments halted while switching to Universal Credit.
In response to this figure, the money expert highlighted: “Do not ignore the letters. Some of those people may have been cut off because they’re no longer eligible but it’s likely that for many people this is just an administrative issue.”
“Watch out for the letter from the DWP, make sure your address details are up to date, and then deal with it. You do not want to have your benefits cut.”
Claimants generally have a three-month window from when they receive their letter to apply to shift to Universal Credit, highlighted in the correspondence.
If certain recipients need more time, they might get a deadline extension provided they present a legitimate reason and request it before the original deadline via the Universal Credit Migration Notice helpline.
People who miss this deadline will have their existing legacy benefits stopped, but they can apply for Universal Credit at a later date however they won’t receive the same transitional protections they’ll get if they apply within three months of receiving their letter.
