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Martin Lewis warns millions over easy NHS mistake that could trigger £100 fine
Martin Lewis says 150,000 penalty notices were issued after claimants wrongly assumed Universal Credit kept their NHS exemption rights.
- Money expert Martin Lewis issued an urgent warning to millions of Universal Credit claimants regarding a surge in NHS fines, cautioning that moving from Tax Credits does not automatically entitle them to free prescriptions and dental treatment.
- Many people unknowingly fall into a "costly trap" after switching from Tax Credits to Universal Credit, assuming previous NHS benefits still apply despite significantly different income thresholds between the systems.
- Figures obtained by MoneySavingExpert through a Freedom of Information request reveal incorrect benefits-based prescription claims surged by 632%, with more than 150,000 fines issued for incorrectly claiming exemptions in 2024/25.
- A penalty notice worth up to £100 can arrive weeks later; one woman told MoneySavingExpert she faced a "nasty surprise" after assuming her child's Disability Living Allowance status covered her own costs.
- Anyone who believes they were wrongly fined can challenge the decision through the NHS Business Services Authority, while Martin Lewis continues calling for clearer guidance for those "not trying to do something wrong.
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