Martin Lewis urges people on legacy benefits not to ignore DWP letter or payments could stop
Martin Lewis is urging thousands of people on legacy benefits not to ignore an important letter from the Department for Work and Pensions (DWP) or it could have a "devastating" financial impact on your income. During the latest Martin Lewis Money Show Live the consumer champion warned as many as one-in-three people on Tax Credits are ignoring the Migration Notice letter and losing out on Transitional Protection payments when they move to Universal Credit.
Martin told ITV viewers: “This one’s really important. There are hundreds of thousands of people still on the old Tax Credits system. Do not ignore the letter you are about to get, or may have already gotten from the Department for Work and Pensions - the Tax Credits system is being turned off in April.”
READ MORE: People on ESA to receive Universal Credit migration notices this month
The financial guru continued: “DWP is posting letters (Migration Notices) to say you must apply to switch to Universal Credit. Do not ignore this, if you do you could have your benefits stopped and even if you then reapply to get your benefits, you will have lost the Transitional Protection that gives you more money.”
Martin added: “I’m hearing up to one-in-three people are not listening to the letter and are seeing their benefits drop. If you know someone on Tax Credits or you’re on Tax Credits, please do not ignore that letter - it could be devastating financially for you.”
Transitional Protection in a nutshell
Transitional protection helps with your move to Universal Credit.
If eligible, this protection means you can:
get a transitional protection payment added to your Universal Credit entitlement if you receive more from your previous Tax Credits or legacy benefit. This is known as the ‘transitional element’
claim Universal Credit and have money, savings and investments over £16,000 for 12 assessment periods if you received tax credits. This is known as the ‘transitional capital disregard’
claim Universal Credit if you or your partner are a full-time student in higher education until the course is finished. This is known as the ‘transitional student disregard’
Full details on what to do if you receive a Migration Notice can be found on GOV.UK here.
The DWP recently warned there will be "no more payments" of Tax Credits from April 6. The legacy benefit is set to end with the current financial year on April 5 and anyone who has not already made a claim for Universal Credit or Pension Credit will not receive any more payments.
The last Migration Notices were sent out in October, giving existing Tax Credits claimants three months' notice to make a new claim for Universal Credit before their legacy benefit award ends.
Guidance on GOV.UK states: “Tax credits end on 5 April 2025. No more payments will be made after that. You’ll be sent a letter if you are eligible for Universal Credit or Pension Credit instead.”
Last year, the DWP confirmed that over one million people are transferring from the legacy benefits system to Universal Credit. Legacy benefits such as Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance and Income-Related Employment and Support Allowance are being phased out to bring government financial support into one place.
DWP also said that the ‘majority’ of people will not be worse off when they move to Universal Credit. Anyone who needs support is also being encouraged to contact DWP for a smooth transition before their deadline. More information can be found on the dedicated Migration Notice page on GOV.UK here.
Help to claim
Citizens Advice offers dedicated support for people who have received a Migration Notice. People can access the support and advice online here or by calling Citizens Advice on:
Scotland: 0800 023 2581
England: 0800 144 8 444
Wales: 08000 241 220
