A couple asked Mr Lewis a question about tax on savingsNicholas Dawson11:53, 02 Jun 2026Martin Lewis has issued a word of warning for savers who could be missing out on a valuable income boost. He urged those on certain DWP benefits to take particular note.‌The consumer champion shared his thoughts after a question came in on his BBC podcast. A couple enquired about when they would need to pay tax on their savings account interest earnings.‌The married pair, both in their 50s, revealed their sole income came from the Employment and Support Allowance (ESA) Support Group and Carer's Allowance. The couple disclosed they had £150,000 in savings, generating £2,300 in interest annually. They wanted to know whether they would face a tax bill on these savings.‌Replying to the question, Mr Lewis suggested they were potentially asking the "wrong question" given their interest earnings. Referring to their £2,300 annual return, he said: "That's just not enough interest. There are lots of savings accounts paying you over four per cent, some at 4.5 per cent."'Really important'Mr Lewis stressed the urgency of taking action given the couple's personal circumstances. He said: "I suspect life is quite difficult, because I know that Employment and Support Allowance is a benefit for people who have a disability or health condition that limits your ability to work. So it's really important that you make those savings work as best as they possibly can for you."State Pensioners to face major tax change‌He explained that they could potentially be earning nearly £5,000 in interest by transferring their cash into an account offering a more competitive rate. This would represent an additional £2,700 on top of their current £2,300 earnings.With £150,000 in savings at 4 per cent interest, you would accumulate £6,000 over the year. At 4.5 per cent, your annual interest earnings would rise to £6,750.Mr Lewis told the couple: "The most important start point is you that you should be in savings accounts that pay more." Mr Lewis suggested one way to protect their savings from tax while securing a better rate would be to place them into an ISA.‌Currently, each person is permitted to deposit up to £20,000 annually into ISAs. This can be split between cash ISAs and stocks and shares ISAs, as you decide.He added that beyond this, the couple could deposit their funds into a competitive easy access account, where rates of up to 4.5 per cent are currently available. Mr Lewis said it's worthwhile browsing the savings market as there are "loads more" accounts paying over 4 per cent.Article continues belowTax allowancesRegarding the tax query, he noted that given their ESA and Carer's Allowance, their income would likely sit at around £220 to £230 per week, equivalent to approximately £11,440 a year or £11,960 a year. This means they would each fall below the personal allowance, which permits an individual to earn up to £12,570 annually without paying income tax, including savings interest earnings.However, Mr Lewis pointed to an additional allowance worth bearing in mind. Each person is also entitled to a starting rate for savings — an extra £5,000 allowance on top of your personal allowance for interest earnings.This is reduced by £1 for every £1 of income earned above the personal allowance, meaning the starter rate disappears entirely once your income hits £17,570 a year. Separately, a basic rate taxpayer can also pocket up to £1,000 in interest tax-free during each financial year.