Overview
- Ministers are weighing a reduction of the annual cash ISA limit from £20,000 to roughly £10,000 to nudge savers toward stocks and shares, though no decision has been announced.
- Chancellor Rachel Reeves is due to set out the Autumn Budget on Wednesday, 26 November, when any ISA changes would be detailed.
- HMRC says ISA holders who accidentally oversubscribed should not take action, with the tax authority contacting investors after the tax year if needed, while providers can remove excess paid in the current year.
- Personal finance experts urge savers to shelter funds under the current rules or open ISAs now to secure rates, and providers report increased account openings and balances in 2025.
- Building societies and consumer advocates warn a lower cash cap could hurt low‑risk savers and constrain lending, as the frozen £450,000 Lifetime ISA property cap draws criticism for excluding many London first‑time buyers.