MoneySavingExpert (MSE) founder Martin Lewis and his team of MSE specialists have issued an alert for claimants who have transitioned from Tax Credits to Universal Credit. They are being warned that many may have unknowingly lost their entitlement to complimentary NHS prescriptions and dental care, with a risk of a £100 fine possible.

A statement on the MSE website reads: “If you’ve moved from Tax Credits to Universal Credit, don’t assume you still qualify for free prescriptions and dental treatment from the NHS – the criteria is different and you may now need to pay. Fail to do so, and you could be fined up to £100.”

Viewers were also alerted during the latest instalment of the Martin Lewis Money Show Live on ITV last night (March 17). The finance expert revealed that the earnings threshold to qualify for these free health benefits is significantly reduced under Universal Credit.

Under the old system, the income limit for free prescriptions and dental treatment with Tax Credits was £15,276 before tax and National Insurance. MSE calculated this as approximately £1,210 a month, or £14,520 a year, after deductions.

However, for those now receiving Universal Credit, the income threshold drops. It is set at £435 a month, or £935 a month if the claim includes a child element or a component for limited capability for work. On the MSE website, it stated this is equivalent to roughly £5,220 or £11,220 a year.

With the transfer of Tax Credits claims to Universal Credit, even if they are not April 2025, Martin highlighted a resulting surge in people being penalised for wrongly claiming free NHS prescriptions and dental treatment. People who attempt to claim these services without charge, despite being ineligible, can face penalties of up to £100.

MSE said that according to a Freedom of Information request for the last two financial years to the NHSBSA – the organisation which oversees the NHS’ finances, “there was a 58% increase in dental treatment PCNs issued in 2024/25 compared to 2023/24 – at 211,968, up from 134,137”.

Martin stressed that many people are unaware that their eligibility has changed, leading to a significant increase in fines. 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.”

He added: “And remember, with Universal Credit, it’s deemed by a monthly assessment. With Tax Credits, it’s 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 taking the place of other old benefits, like Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit. But in some cases, such as when claimants live in supported or temporary housing, certain older benefits, such as Housing Benefit, might still be available.