Overview

• The Treasury confirmed that no changes will apply to funds already held in cash ISAs or take effect before the next tax year.
• More than 50 building societies and financial firms warned that reducing the limit could restrict mortgage funding and undermine savers’ financial resilience.
• Finance expert Martin Lewis said any future cut, if implemented, is more likely to set the allowance at £10,000 or £15,000 rather than the £4,000 level previously speculated.
• Nottingham Building Society data shows just 38% of cash ISA holders would consider switching to stocks and shares ISAs if the annual limit were reduced, with a third saying they would save less overall.
• Personal finance experts have proposed a ‘starter investment ISA’ offering small contributions with state-backed bonuses as an alternative to cutting cash ISA allowances.