Universal Credit claimants have been warned about a 'confusing' new rule from the Department for Work and Pensions (DWP) that could result in fines. Money expert Martin Lewis has spoken out on the issue, urging affected households to check the latest regulations.
Changes to eligibility for free prescriptions and dental care
People who have recently moved from Tax Credits to Universal Credit (UC) may no longer qualify for free NHS prescriptions and dental treatment. Many have assumed these benefits would continue automatically, but this is not the case. The confusion stems from a major welfare system overhaul, which has phased out older benefits like Tax Credits in favour of Universal Credit.
Martin Lewis highlighted a surge in fines for individuals who were unaware of their changed eligibility. Under Tax Credits, households earning up to around £14,520 a year after tax could still receive free NHS prescriptions and dental care. However, under Universal Credit, the income threshold drops to roughly £5,220 or £11,220 depending on individual circumstances, meaning many people are affected.
Martin Lewis's warning on ITV
Speaking on his ITV show, Lewis 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: "Many who were on Tax Credits, they get to the box at the dentist, or they get to prescriptions, and they just tick the Tax Credits, Jobseeker's Allowance or Universal Credit boxes. Then they get sent a letter saying, can you check that you're really eligible, because they don't realise the income threshold is different. They don't do that, and then there's up to £100 fine for those people that they don't realise they're doing anything wrong."
Lewis urged all affected households to verify their eligibility to avoid penalties. The DWP has not commented on the specific number of fines issued but confirmed that claimants should check their entitlement regularly.
