Home Finance DWP letter warning as 1.6million people could see benefits payments axed

DWP letter warning as 1.6million people could see benefits payments axed

The Department for Work and Pensions (DWP) is issuing a crucial letter that could result in the cessation of benefits payments for 1.6 million individuals. The correspondence pertains to the transition of people from ‘legacy’ benefits to Universal Credit.

This change affects a wide range of payments claimed by individuals across the UK, including Child Tax Credit, Working Tax Credit, Housing Benefit, Income Support, Income-based Jobseeker’s Allowance, and Income-related Employment and Support Allowance.

Over 1.6 million individuals are at risk of losing their DWP benefits if they fail to pay attention to this vital letter from the DWP. “Migration notices” will be dispatched to all claimants on the old system by the end of 2025, cutting the original timeline by three years, according to BirminghamLive.

The actions required depend on the contents of the letter. If the letter provides a deadline for claiming Universal Credit, it is a ‘migration notice’, and the deadline should be at least three months after the date the notice was sent.

If your letter does not include a deadline, there is no need to claim Universal Credit unless you choose to do so – even if the letter states that you will have to claim Universal Credit in the future. Once you make a claim, you will not be able to revert to your previous benefits, reports Birmingham Live.

Citizens Advice has issued a warning that the proportion of individuals failing to transition from legacy benefits includes 20 per cent of those aged 30-39, 22 per cent of those aged 40-49, 27 per cent of those aged 50-59 and 32 per cent of those aged 60 and above.

It’s important to note that your old benefits will cease after the deadline. However, if you claim Universal Credit before the deadline, the DWP may provide you with an additional amount to prevent you from being worse off. This is known as ‘transitional protection’.

This implies that if you would receive less on Universal Credit than your previous benefits, you’ll be given an extra sum to bridge the gap. Over time, the DWP will reduce this additional amount, meaning you’ll eventually receive the standard amount on Universal Credit.


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