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Reeves Reportedly Weighs Halving Cash ISA Allowance to £10,000 Ahead of Budget

A Treasury pledge to protect cash sits alongside a decision due in the 26 November Budget.

Overview

  • The Financial Times report, echoed by multiple outlets, says the chancellor is considering cutting the annual cash ISA limit from £20,000 to £10,000, though no change has been confirmed.
  • A Treasury spokesperson says cash savings will be protected, while stressing the goal of getting more Britons investing to support UK companies.
  • Parliament’s Treasury Select Committee warns a cut would not drive stock market investment and could raise mortgage costs, citing the need for better financial education first.
  • Financial firms and advisers urge savers to consider using this tax year’s ISA allowance by 5 April 2026, while consumer advocate Martin Lewis cautions against panic moves as any change would likely affect future contributions only.
  • Under current rules, up to £20,000 a year can be placed across cash and stocks and shares ISAs tax-free, with deposits protected up to £85,000 per institution by the FSCS.