The UK Government has said claimants still on legacy benefits should have transferred to Universal Credit by the end of March.

People who have transferred to Universal Credit from Tax Credits are being warned they could face a fine of up to £100. Martin Lewis issued the alert for claimants in England who have moved from the so-called legacy benefit who ticked the box for ‘free prescriptions and dental treatment’.

Prescriptions are free in Scotland which means nobody in work or claiming benefits needs to pay for them. However, this is not the case in England.

Martin urged people not to assume you get free prescriptions and dental care on Universal Credit because you did so on Tax Credits. During the latest edition of The Martin Lewis Money Show Live on STV, the consumer champion explained income for people on Tax Credits was assessed annually, but Universal Credit is on a month-to-month basis. Incorrectly claiming free prescriptions could land claimants in England with a penalty of up to £100.

Martin told viewers: “Do not assume if you move from Tax Credits to Universal Credit you will get free prescriptions and dental. The Universal Credit income threshold for these is lower than under Tax Credits and remember, with Universal Credit your eligibility is deemed by a monthly assessment and with Tax Credits it is an annual assessment.”

The financial expert continued to explain that when individuals are completing the form, they reach the section for free prescriptions and dental care and simply tick either the Universal Credit, Jobseeker’s Allowance or Tax Credits box. However, this can prompt a letter from the Department for Work and Pensions (DWP) asking them to verify their eligibility as they may not be aware that the income threshold varies.

Consequently, those who fail to check it and understand the difference could face a fine of up to £100 – even if they were unaware they had made an error, reports the Daily Record. Martin mentioned he is also in discussions with the UK Government to improve the clarity of the forms due to the increase in fines over the past couple of years.

He added: “Protect yourself and go check if you are eligible.” Comprehensive information on eligibility for free prescriptions on Universal Credit can be found on GOV.UK.

Transition to Universal Credit

Universal Credit is progressively replacing six existing benefits, including Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit.

The UK Government states that the new system aims to streamline the benefits system by consolidating several payments into a single monthly payment.

The managed migration process has been underway for several years and involves directly contacting claimants when it is their turn to transition to Universal Credit. The DWP sends out letters detailing the necessary steps individuals need to take and offers assistance to those who require help with the application process.

Under the managed migration scheme, claimants who receive a Migration Notice are instructed to apply for Universal Credit within a given deadline. Those who fail to submit a claim in time could see their current benefits halted.

The transition of people receiving Income Support and income-based JSA is nearly finished, and these two benefits will officially cease at the end of March as the UK Government continues its broader reform of the welfare system.

However, the DWP have agreed to a brief extension for some cases involving Employment and Support Allowance (ESA). The Department states that many ESA claims are more complex and necessitate additional support to ensure people transition safely to Universal Credit.