Financial guru Martin Lewis has said that many may be able to claim a free sum of £600 from the government, with people being urged to act sooner rather than later.
Talking on The Martin Lewis Money Show, the 50-year-old told viewers they may qualify for a Help To Save bank account - and if you do, you should open one now.
The Money Saving Expert (MSE) founder said "there is nothing anywhere even as close to as good as those terms", with people getting £600 to spend with no restrictions on what they use it on.
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Martin Lewis showed his viewers how one woman successfully signed up to a Help To Save bank account.
Sharing the example, Martin explained that the woman had been struggling to make ends meet. However, since opening a Help To Save account she managed to reduce her broadband and mobile phone costs and stuck the £50 a month which she saved into the Help To Save account, reports Yorkshire Live
She told Martin's viewers: "I've been paying £50 a month for two years and my account showed £1,200.
"The government then paid me £600 into my current account. It's amazing!"
What is a Help To Save bank account?
Help to Save is a type of savings account that allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over four years. The bank account is backed by the government meaning all savings in the scheme are secure.
According to the government: "You can save between £1 and £50 each calendar month. You do not have to pay money in every month. You can pay money into your Help to Save account by debit card, standing order or bank transfer.
"You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by January 8 you will not be able to pay in again until February 1.
"You can only withdraw money from your Help to Save account to your bank account."
How to qualify for £600 cash payment
In order to get the £600 payment, you will need to be on Universal Credit and on a low income.
Martin urged people to claim it, if eligible, and not to wait. He said: "It's very important for financial resilience if you can. It's for people who are on universal credit and low incomes, if you can. Not everyone will qualify but it is worth checking.
"You can put in up to £50 a month over two years. Then, the bonus you get is on the maximum amount you had in. This is really crucial. Imagine you put in £50 a month, and you got up to £600, and then you had an emergency, your window's broken and you had to pay to have it repaired and all your £600 goes and you can't afford to put any money in after that.
"At the end of the two years, you still get the bonus on the highest amount you had in. Fifty per cent of £600, you'd still get a £300 bonus even if you had nothing in it. The concept is that it allows people on very low incomes to save, but still use the money if they need to."
You can apply via the Gov.uk website.
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