Over 300,000 Lose Benefits as DWP Pushes Major Welfare Overhaul

As the DWP continues its welfare overhaul, over 300,000 households risk losing benefits if they fail to respond to crucial government letters in time.

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The Department for Work and Pensions (DWP) has announced a significant overhaul of the benefits system that has already caused widespread concern among claimants. Hundreds of thousands of households have seen their benefits stopped after failing to take action in response to important government letters. According to The Independent, more than 300,000 households have lost vital financial support due to failing to meet a critical deadline. The DWP is pushing forward with an ambitious plan to transition people onto a new welfare system by the end of March 2026.

The Migration Process and Its Potential Impact

The DWP’s migration process, which began in 2022, is designed to shift recipients from older benefits, such as tax credits and housing support, to a more streamlined system. However, many households remain unaware of the risks posed by missing key deadlines. According to The Independent, over 2.3 million households have been sent migration notices, but a significant number have failed to respond in time, resulting in the loss of their benefits. This has left many struggling with monthly income cuts averaging over £1,000.

Conor Lawlor, a benefit specialist at Turn2Us, emphasized the urgency for claimants to respond quickly, stating: “If someone gets a managed migration letter now, they should make a claim before the deadline in their letter to ensure they get transitional protection.” Missing the deadline not only causes payments to stop but can also affect the amount of money claimants will receive in the future.

Risks of Missing the Deadline and Available Support

If claimants fail to act in time, the DWP will intervene with an “enhanced support journey” aimed at guiding people through the process. This includes follow-up letters, phone calls, and even home visits. However, experts advise that these steps should not be relied upon as a safety net, as they may not fully guarantee continued support. According to a DWP spokesperson, “It is important people respond to the letter asking them to make the move in order to continue receiving benefits.”

Additionally, the DWP is providing extra help for those transitioning from certain benefits, such as Employment and Support Allowance (ESA). This includes phone calls and further guidance, which aims to ensure that vulnerable individuals are not left without support. “Help is at hand for those making the move, including our dedicated helpline, guidance on gov.uk, and the Citizens Advice’s free and independent help to claim service,” the spokesperson noted.

Barriers and Misunderstandings About Eligibility

Despite these efforts, many individuals are still confused about whether they qualify for the new system. Common misunderstandings include concerns about income, savings limits, and eligibility. For example, claimants with savings above £16,000 are typically disqualified from receiving support, but the DWP has temporarily waived this rule for a 12-month period for those involved in the migration process.

This confusion has led many people to hesitate in making the transition, mistakenly believing they won’t qualify or that the process is too complex. Welfare experts continue to encourage those who have received migration notices to act as soon as possible to avoid missing out on the critical transitional protection that ensures financial stability during the shift.

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