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Edinburgh Live
Edinburgh Live
National
Emma Munbodh & Dayna McAlpine

Martin Lewis' urgent warning to 2.6million people on benefits amid DWP switchover

Money Saving Expert Martin Lewis has slammed the UK Government's decision to move millions of low-income households on to Universal Credit in the middle of a cost of living crisis.

Mr Lewis has warned that Universal Credit is already below inflation and now families who are already struggling could see their earnings fall again, the Mirror reports.

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The money expert said: "We have a situation where Universal Credit itself hasn't been uprated by the current level of inflation because it was the older level of inflation when it was lower.

"You're [The government is] actually going to move people onto a new system where they can earn substantially less amid a cost of living crisis, we are again throwing some of the poor in society under the bus [...] do the Government not understand the timing?"

More than 2.6million people on legacy benefits will automatically be moved over to Universal Credit from this week - the migration means people on legacy support, such as Jobseeker’s Allowance will be transferred across, with 500 people to receive letters this week – but for many, it could mean a dramatic cut in payments.

The Government's own figures estimate that the move could leave 900,000 people worse off.

Some legacy benefits will "run on" for two weeks to help bridge some of that gap during the migration period.

This includes Housing Benefit, Income Support, income-related Employment and Support Allowance and income-based Jobseeker's Allowance.

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

“It is a dynamic system which adjusts as people’s earnings change, is more generous overall than the old benefits, and simplifies our safety net for those who cannot work.

“Roughly 1.4 million people on legacy benefits would be better off on Universal Credit, with top up payments available for eligible claimants whose Universal Credit entitlement is less.”

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