Martin Lewis has issued a warning to people who have moved from Tax Credits to Universal Credit, cautioning them not to assume they are still entitled to free NHS prescriptions and dental treatment. The MoneySavingExpert.com founder explained on his ITV show that the income threshold for these benefits is lower under Universal Credit.
Under Tax Credits, the earnings limit for free prescriptions and dental care is £15,276 before tax and National Insurance, which equates to roughly £1,210 a month or £14,520 a year after deductions. However, for Universal Credit claimants, the threshold is just £435 a month, or £935 if the claim includes a child element or limited capability for work component—equivalent to about £5,220 or £11,220 a year.
Tax Credits ended in April 2025, with claims migrating to Universal Credit. Lewis highlighted a spike in fines for incorrectly claiming free NHS prescriptions and dental treatment, with penalties of up to £100. He said many people tick the wrong box on forms, unaware that their eligibility has changed.
“If you move from Tax Credits to Universal Credit, do not assume you get free prescriptions,” Lewis said. “The Universal Credit income threshold for these is lower than under Tax Credits. Many who were on Tax Credits tick the box at the dentist or prescriptions, then get a letter asking them to check eligibility. They don’t, and there is an up to £100 fine.”
Universal Credit is also replacing Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit, though some old benefits may continue in certain cases, such as Housing Benefit for those in supported or temporary accommodation.
