Overview
- Reports suggest the Chancellor is considering halving the annual Cash ISA limit from £20,000 to about £10,000, though no policy has been announced.
- A Treasury spokesperson says cash savings will be protected, while reiterating the goal to get more Britons investing in equities.
- The Treasury Committee, citing Martin Lewis, argues a lower cash allowance would not drive people into stocks and could risk unintended effects such as pressure on mortgage costs.
- Survey data from Flagstone/Opinium indicates roughly 14.4 million people save only in cash ISAs, many lack confidence in investing, and average balances are around £6,993.
- Financial advisers urge households to use current ISA and pension allowances now, with guidance noting any change would likely affect future contributions, not existing ISA balances, and the deadline for 2025/26 allowances is 5 April 2026.