Money expert Martin Lewis has issued an urgent warning to anyone who receives a DWP letter about their benefits.
Speaking on the latest episode of The Martin Lewis Money Show Live on ITV1 and ITVX, the money mastermind set out in no uncertain terms how failing to act on a letter currently being sent out to people on Tax Credits would be ‘devastating financially’ for them.
He issued a plea as he warned those affected ‘do not ignore this’ as your benefits could be stopped or reduced.
In April, the DWP’s Tax Credits system is being phased out and those claiming the old style Tax Credits are being migrated to the catch-all benefit Universal Credit.
But those still on Tax Credits are not automatically moved to Universal Credit and they need to reply to the letter the DWP sends them in order to keep their benefits.
Even if you apply later on, you may not receive as much money as before because of the loss of ‘transitional protections’, Martin warned.
Martin Lewis said: “This one is really important. There are hundreds of thousands of people still on the old tax credits system.
“Do not ignore the letter you’re about to get or may have already got, from the Department for Work and Pensions.
“The Tax Credits system is being turned off in April. DWP is posting letters saying 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 protections that give you more money.
“And 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, do not, please, ignore that letter, it could be devastating financially for you.”
The DWP backs this up. It says: “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.
“It’s quicker and easier to manage your tax credits online than over the phone.”
