Martin Lewis has issued a stark warning to millions of Universal Credit claimants, cautioning them against assuming they are entitled to free NHS prescriptions and dental treatment. A simple mistake could result in a £100 fine.
Income Thresholds Differ Significantly
The MoneySavingExpert founder highlighted the issue on his ITV show after noticing a surge in penalty notices. Under Tax Credits, households earning up to around £14,520 a year after tax could qualify for free treatment. However, under Universal Credit, the threshold drops to roughly £5,220 or £11,220 depending on circumstances.
This gap means many people who have recently moved from Tax Credits to Universal Credit may unknowingly lose their entitlement. Lewis explained that Tax Credits assessed eligibility annually, while Universal Credit does so monthly, causing entitlements to fluctuate with income.
Rise in Penalty Notices
Data obtained by MoneySavingExpert from the NHS Business Services Authority shows dental penalty charge notices rose by 58% in 2024/25, with over 150,000 issued to people who incorrectly ticked benefits boxes. Prescription penalty notices surged 17%, with wrongly claimed benefits-based exemptions up by 632%.
One woman shared her story with MoneySavingExpert after receiving a £100 fine. She had moved from Tax Credits to Universal Credit and assumed she was still covered, partly because her child received Disability Living Allowance. Her appeal was dismissed. "I just hope other people don't get a nasty surprise," she said.
Lewis Calls for Clearer Forms
Lewis is pushing the government to act, stating: "I don't believe its forms are clear enough to tell those people who aren't trying to do something wrong, by the way, you're not entitled to free prescriptions anymore, you're not entitled to free dentistry."
He urged claimants to check their eligibility before visiting the dentist or pharmacy. A spokesperson for Forever Dental and Skin added: "Dental treatment can already be costly, so being caught off guard by a fine on top of that is the last thing anyone needs. Before your next dental appointment, it is worth taking a few minutes to check whether your move to Universal Credit has affected your eligibility for free treatment."
The warning underscores the importance of understanding the different rules under Universal Credit to avoid unexpected penalties.
