UK Confirms Cash ISA Overhaul to Encourage Higher-Return Investments

Chancellor Rachel Reeves announces plans to cut annual deposit limits, with changes unlikely before April 2026.

Chancellor Rachel Reeves has confirmed plans to reform Cash ISAs, aiming to shift savings into higher-return investments like equities.
Proposals include reducing the annual Cash ISA deposit limit from £20,000 to £4,000, while leaving existing savings unaffected.
The government is prioritizing understanding public needs and has not finalized a timeline, though changes are unlikely before April 2026.
Speculation about the reforms has driven a surge in Cash ISA deposits, with £3.6 billion deposited in February 2025, the highest in five months.
The reforms are part of a broader effort to address inflation's impact on savings and boost retail investment to support economic growth.