Martin Lewis issues urgent warning to thousands on DWP benefits

The Money Saving Expert has urged people not to ignore a vital letter from the Department for Work and Pensions (DWP) that's going out to thousands of benefits claimants

DWP benefits claimants have been issued a three-word warning from Martin Lewis - "do not ignore". The finance guru has issued a warning to thousands of people on benefits, urging them not to overlook an impending change that could result in the loss of their payments.

Individuals receiving three significant "legacy benefits" should be on the lookout for a letter from the Department for Work and Pensions. During his BBC podcast, Martin provided guidance on how claimants can navigate the transition to a new payment structure.

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

Read more: Martin Lewis issues warning

However, to avoid a "cliff edge" for those making the transition, ministers arranged for the process to be phased over a couple of years.

This has been referred to as "managed migration" allowing individuals who claimed the six benefits to retain them as a "legacy" for a short period.

Martin advised those affected to be vigilant for a crucial letter from the DWP, which will outline the necessary steps to receive it.

He stated: "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 because when you switch to Universal Credit, a new application must be filled out to confirm your eligibility.

Government statistics reveal that over the past two years, the DWP has issued more than 1.14 million migration notices.

However, if you fail to complete your application after receiving a notice, your benefits could be stopped.