Overview

• Chancellor Rachel Reeves confirmed the overall £20,000 ISA limit will stay in place while introducing a separate, lower cap for cash ISAs.
• Officials say negotiations continue over the precise cash ISA threshold, with City firms lobbying for a cut as deep as £4,000 and building societies warning of harm to risk-averse savers.
• The reform is designed to encourage more retail investment in UK equities by nudging savers out of cash-focused accounts.
• Financial experts caution that simply trimming cash ISA allowances may not alter saver behaviour and could undermine emergency and short-term savings strategies.
• Bank of England data show a record £14 billion flowed into cash ISAs in April as savers rushed to secure the existing limit ahead of the planned announcement.