UK households hit with £100 fines warning over DWP’s NHS rule | Personal Finance | Finance

UK residents have been warned they could face a £100 fine if they are not careful. There has been a significant drop in the earnings threshold between universal credit and tax credits, leading to a dramatic increase in the number of people being fined. Under the loans, households earning up to around £14,520 a year after tax will still be eligible for free NHS prescriptions and dental treatment.

However, under universal credit this falls to roughly £5,220 or £11,220, depending on a person’s circumstances. Money Saving Expert. For many people, this gap alone is enough to eliminate the rights they assumed were still valid. Tax credits are also assessed annually, but universal credit is assessed monthly; This means that entitlement can vary depending on what the person has earned in a particular assessment period.

Financial expert Martin Lewis said: “Most tax credit users go to the box at the dentist or pick up a prescription and just tick the tax credits, jobseeker’s allowance or universal credit boxes.

“Then they get a letter saying: Can you check if you are actually eligible because they don’t know the income threshold is different.

“They don’t do this and people who don’t realize they’re doing anything wrong are being fined up to £100.”

Spokesperson for dental professionals Forever Dental and Skin He said: “Dental treatment can already be costly, so the last thing anyone needs is to be caught unprepared for a fine on top of that.

“Before your next dentist appointment, it’s worth taking a few minutes to check whether switching to Universal Credit affects your eligibility for free treatment.

“The criteria are different to those under Tax Credits and many people will not be aware of this yet.

“A little caution goes a long way when it comes to medical costs – and in this case, a quick check could save you from an unexpected £100 fine arriving in the post.”