Martin Lewis Warns UC Claimants of Free Prescription Loss

Finance expert Martin Lewis has issued a warning to Universal Credit claimants in England who previously received Tax Credits, cautioning that many may have lost eligibility for free NHS prescriptions and dental treatment, potentially facing fines of up to 100 pounds if they claim these benefits incorrectly. The alert comes as the UK government completes the transition from legacy benefits to Universal Credit, with Tax Credits phasing out in April 2025.

The shift, managed by the Department for Work and Pensions, has caught some recipients off guard due to differing income thresholds for health cost exemptions. Under the former Tax Credits system, individuals qualified for free prescriptions and dental care if their annual earnings before tax and National Insurance were below 15,276 pounds, equivalent to roughly 1,210 pounds a month or 14,520 pounds a year after deductions. In contrast, Universal Credit sets a stricter monthly threshold of 435 pounds, rising to 935 pounds for claims including a child element or a component for limited capability for work. This translates to approximately 5,220 pounds or 11,220 pounds annually.

Lewis, founder of MoneySavingExpert.com, highlighted...