News

Martin Lewis warns 2.6m people will benefit as DWP transition begins

More than 2.6 million people with legacy benefits will be switched to Universal Credit starting this week in an automated process that was previously halted due to the Covid-19 pandemic

martin lewis
The migration means that people with legacy support, such as B. Jobseeker’s Allowance, to be switched to the six-in-one benefit

Martin Lewis has criticized the government’s decision to switch millions of low-income households to universal credit amid a cost-of-living crisis.

Mr Lewis, who has been an outspoken critic of the government over the rise in the cost of living, said Universal Credit is already below inflation and now families could see their earnings falling again.

“We have a situation where Universal Credit itself has not been upgraded by the current level of inflation because it was the older level of inflation when it was lower,” the money expert said.

“You’re [The government is] Actually getting people into a new system where they can earn significantly less in the midst of a cost-of-living crisis is throwing some of the poor in society under the bus again […] Doesn’t the government understand the timing?”

More than 2.6 million people with legacy benefits will be switched to Universal Credit starting this week in an automated process that was previously halted due to the Covid-19 pandemic.

The migration means that people with legacy support, such as B. unemployment benefits, with 500 people receiving letters this week – but for many it could mean a dramatic cut in payments.

More than 20 charities have urged the UK government to halt migration as families struggle with soaring inflation.

Groups have sent to Minister of Labor and Pensions Dr. Therese Coffey wrote, warning that plans to switch old beneficiaries to the new system are “too dangerous to proceed”.

They say the incomes of more than 700,000 people with mental health problems, learning disabilities and dementia could be at risk and that the consequences of stopping benefits could be “devastating and life-threatening”.

In a written statement submitted to the House of Commons on April 25, Ms Coffey said she was “absolutely committed to making this a responsible and safe transition”.

The government’s own figures suggest that the move could make 900,000 people worse off.

We have a guide here on how to check if you’re better off with Universal Credit.

Some legacy benefits will “live on” for two weeks to bridge part of this gap during the migration period.

These include Housing Benefit, Income Support, Earnings-Related Employment and Support Allowance, and Earnings-Related Unemployment Assistance.

See here which services are affected by the change.

blank
Video is loading

Video not available

A UK Government spokesman said: “Over five million people are already being supported by Universal Credit.

“It’s a dynamic system that adjusts as people’s incomes change, is more generous overall than old benefits, and simplifies our safety net for those who can’t work.

“Approximately 1.4 million people with legacy issues would be better off on Universal Credit, with top-up payments available for eligible applicants who are less eligible for Universal Credit.”

Last month, Martin urged anyone on low incomes or eligible for Universal Credit to see if they are eligible for a 50 percent savings boost.

The MSE founder shared his advice on saving amid the cost-of-living crisis, saying Help to Save “can’t be beat” and “many beneficiaries rave about it”.

The Help to Save scheme pays a 50% bonus up to a maximum of £1,200 over four years.

Savers can invest up to £50 a month, with bonuses paid out after two and four years.

The bonus paid is based on the highest balance in your account over the previous 2 years (whatever that is – it doesn’t have to be the ending balance), with a maximum bonus of £600 in any given year.

The bonus for years three and four is paid on the amount of your highest balance in those years, which exceeds your highest balance of the last two years.

To qualify you must be a UK resident and either have Universal Credit with an income from work of £658.64 in the most recent monthly assessment period or be eligible for an Employment Tax Credit and receive an Employment or Child Tax Credit.

You don’t have to save every month and you can withdraw money at any time.

Continue reading

Continue reading

https://www.mirror.co.uk/money/martin-lewis-issues-warning-26million-26920643 Martin Lewis warns 2.6m people will benefit as DWP transition begins

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button