Moved to Universal Credit from Tax Credits? DON'T assume you're still eligible for free prescriptions and dental care – some have been hit with £100 fines for mistakenly claiming

We're pushing the Government to ensure the new rules are clear and so people know whether or not they continue to qualify. We're also asking the Government to consider introducing transitional arrangements to prevent people from being fined where they've not realised the rules have changed.

Why you need to check if you still qualify

In England, NHS prescriptions and dental treatment are chargeable unless you meet certain exemption criteria. Prescriptions are free for everyone elsewhere around the UK, though you'll need to meet specific criteria to claim free dental treatment in Scotland, Northern Ireland or Wales.

Tax Credits (which ended on 5 April 2025) and Universal Credit (UC) (which most of those claiming Tax Credits have migrated onto) both entitle SOME people to get free prescriptions and dental treatment.

However, the exact criteria isn't the same. The key difference is how much you can earn and still qualify – under Universal Credit, the earnings limit is lower than it was under Tax Credits. So, depending on your income, you may no longer qualify for free prescriptions and dental treatment after moving to Universal Credit.

Here's a brief explainer of the differences (we've made some general assumptions to come up with comparable figures):

'I hope other people don't get a nasty surprise'

One MoneySaver, who asked to remain anonymous, told MoneySavingExpert.com (MSE) that she was hit with a £100 fine last year after mistakenly claiming for free dental treatment. She says the dental practice had wrongly put her down as still being eligible after moving from Tax Credits to UC.

Her Penalty Charge Notice (PCN), which she shared with MSE, reads, "We don't usually accept a challenge if your exemption certificate had expired, or if you feel you were misadvised by dental practice staff." The MoneySaver told MSE:

Over 800,000 penalty charges were issued in 2024/25

According to a Freedom of Information request for the last two financial years submitted by MSE 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. Over 150,000 of the PCNs in 2024/25 were issued to people who had checked the Tax Credits, Jobseeker's Allowance or Universal Credit boxes, but were not eligible – more than double the amount recorded in 2023/24.

• There was a 17% increase in prescription PCNs issued in 2024/25 compared to 2023/24, at 661,020 – up from 564,306. In 2024/25, 113,253 PCNs were issued to people who checked benefits boxes, but were not eligible – a 632% increase on the previous financial year.

Of course, there may be a number of contributing factors towards these increases; it's impossible to definitively say whether the migration from legacy benefits to UC has had an impact. Plus, the NHSBSA only began issuing PCNs for prescriptions during 2023/24, so it's possible that there's also been a scaling up of enforcement.

How to challenge an incorrect penalty charge

If the NHSBSA believes you've claimed free dental treatment or prescriptions that you're not entitled to, it may first send you an enquiry letter asking you to confirm the selection you made. After 28 days, if you do not respond, the NHSBSA will issue you with a PCN of up to £100.

When you receive a PCN, you'll need to pay both the original prescription cost or dental bill, plus an additional charge, which is five times the cost of the original bill, up to a maximum of £100.

Currently, a dental examination through the NHS in England costs £26.80 – meaning you'd be charged an additional £100 – though dental costs vary country-by-country. Meanwhile, a single prescription item is currently £9.90 in England, so your additional charge would be £49.50.

If you don’t believe you should have received the PCN, you can use the NHSBSA's online form or contact the NHS' Prescription Exemption Checking Service on 0300 330 9291 or the Dental Exemption Checking Service on 0300 330 1293. You may be asked for proof of your benefits and eligibility, so be prepared to provide these details when you get in touch.

What do the NHSBSA and the Government say?

The NHSBSA says it is your responsibility – not your pharmacy's or dental surgery's – to check whether you're entitled to claim free prescriptions or dental care.

It added that the Department for Work and Pensions (DWP) is responsible for determining the thresholds for Universal Credit, while the Department of Health and Social Care (DHSC) is responsible for setting the eligibility criteria for help with health costs, as well as the policy for penalty charge notices.

A spokesperson from the DHSC said: "Tax Credits and Universal Credit are different benefits with different rules, but individuals on Universal Credit should continue to be entitled to help with health costs, providing they meet the relevant earnings threshold criteria.

"Almost 90% per cent of NHS prescription items and around half of NHS dental treatments are delivered free of charge to the patient."

We've yet to hear from the DWP.