Overview
- Reports say the Chancellor is considering cutting the cash ISA annual limit from £20,000 to £10,000 to nudge savings toward stock market investing.
- MPs on the Treasury Select Committee cautioned against a reduction, with chair Dame Meg Hillier saying this is not the right time to lower the limit.
- The Building Societies Association warned a cut could mean up to 60,000 fewer mortgages and reduce Treasury revenues by as much as about £2.5bn.
- Polling by Flagstone and Opinium found strong resistance to a lower allowance and indicated most cash ISA holders would not shift funds into stocks and shares ISAs.
- Martin Lewis criticised the idea and reminded savers that no rule change has been announced, as cash ISAs continue to attract large inflows reported across 2024 and 2025.