Treasury Delays Cash ISA Reform Until Autumn Budget

Chancellor Rachel Reeves postpones potential changes to cash ISA limits, with reforms unlikely before April 2026.

The UK Treasury is considering reforms to cash ISAs, including reducing the annual tax-free savings limit from £20,000 to as low as £4,000.
Chancellor Rachel Reeves has confirmed that no changes will be announced in the upcoming Spring Statement on March 26, with further updates expected in the Autumn Budget.
The proposed reforms aim to encourage more investment in equities, such as stocks and shares ISAs, to stimulate economic growth and the stock market.
Critics, including savings providers and financial experts, warn that lowering cash ISA limits could penalize cautious savers and reduce funds available for lending by banks and building societies.
Savers are advised to take advantage of the current £20,000 annual allowance before the new tax year begins on April 6, as reforms may come into effect as early as April 2026.