Martin Lewis' Money Saving Expert team has issued saving accounts advice to Universal Credit claimants.
The tips were featured in the latest edition of the MoneySavingExpert newsletter. The finance guru urged people to check their savings rates as the UK faces a cost-of-living crisis.
The team said: "It's estimated UK households put a staggering £180bn extra aside in savings during the pandemic, as many of those who could work from home had far lower costs. Yet rock-bottom interest rates meant they were hardly rewarded for it.
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"The cost of living crisis means the rainy day saved for has arrived for some, as they may need to use those savings."
The Money Saving Expert's team also urged anyone who is on low income to check if they qualify for a huge boost as part of the government's Help to Save scheme. They said: "For those who qualify, Help to Save is unbeatable - it adds a 50% bonus on the highest amount of savings you have in it over two years. Many who are eligible rave about it."
Help to Save is a government savings account available to working people on low incomes who claim Tax Credits and Universal Credit. If you qualify, you'll get an extra 50p for every £1 saved, meaning over four years a maximum saving of £2,400 would result in an overall bonus of £1,200.
You're free to pay in however much you like (up to £50 a month) so even if you part with £5 a month (£1.25 a week) - over two years, you'll get a £60 bonus taking your total pot to £180. Over four years, this would amount to £360.
The scheme, designed to be 'flexible and secure', also hopes to get people into a savings habit. How much is saved and when is up to the account holder, and they don’t need to pay in every month to get a bonus. You can apply online here.
Martin Lewis warned there is a concern that Help to Save encourages people in debt to save when they should be paying off arrears, but said it is possible to get the best of both worlds.
He added: "The fact that you are given the bonus based on the highest amount you have saved, rather than the amount that you actually have in there, means you can build up your savings until you have an emergency that you would otherwise have borrowed for and then use your savings instead of borrowing, but you'll still be rewarded for the fact that you saved in the first place.
"It's a very clever scheme and one that will work for many people. Of course though, if you have extremely expensive debts, rather than saving, it's best to try and clear those first."
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