The MoneySavingExpert.com founder explained that you may no longer be entitled to free NHS prescriptions or dental treatment
Martin Lewis has issued an urgent warning for anyone who has moved from Tax Credits to Universal Credit.
Speaking during the latest episode of his Martin Lewis Money Show Live on ITV, the MoneySavingExpert.com founder explained that you may no longer be entitled to free NHS prescriptions or dental treatment, as the income threshold to qualify for these is lower on Universal Credit.
The earnings limit for free prescriptions and dental treatment with Tax Credits is £15,276 before tax and National Insurance. MSE says this works out at around £1,210 a month, or £14,520 a year, after tax and National Insurance.
But for someone on Universal Credit, the income threshold is £435, or £935 a month if your claim includes a child element or component for limited capability for work. MSE says this is equivalent to roughly £5,220 or £11,220 a year.
Tax Credits ended in April 2025 with claims being moved over to Universal Credit – due to this, Martin explained how there has been a spike in people being fined for incorrectly claiming free NHS prescriptions and dental.
You can be fined up to £100 if you try and claim these for free despite not qualifying – but Martin explained that people may not realise their eligibility has changed.
He said: “If you move from Tax Credits to Universal Credit, do not assume you get free prescriptions, in England that is, and dental. The Universal Credit income threshold for these is lower than under Tax Credits.
“And remember, with Universal Credit is deemed by monthly assessment, with Tax Credits its an annual assessment – that can change things up too.
“Many who were on Tax Credits, they get to the box at the dentist or prescriptions, and they tick the Tax Credits, Jobseeker’s Allowance or Universal Credit boxes.
“Then they get sent a letter saying ‘can you check you’re really eligible’ because they don’t realise the income threshold is different.
“They don’t do that and so there is an up to £100 fine for those people – but they don’t realise they’re doing anything wrong. There has been a huge increase in fines on this.”
Universal Credit is also replacing Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance and Housing Benefit.
There will be some cases where old benefits can continue, for example, you can continue to claim Housing Benefit if you are in supported or temporary accommodation.
