Overview

• Chancellor Rachel Reeves has confirmed the annual overall ISA limit will remain at £20,000, preserving tax-free savings opportunities.
• Reeves emphasized the need for savers to achieve better returns by investing in equities rather than relying heavily on cash or bonds.
• Reports suggest a potential reduction in the cash ISA limit, with rumors indicating it could drop from £20,000 to as low as £4,000.
• Experts like Martin Lewis and Paul Lewis warn that cash ISA reductions may still be under consideration and could be announced in the Autumn Budget this October.
• Critics argue that reducing cash ISA allowances could harm cautious savers and retirees, advocating instead for improved investment education and guidance.