UK Government Explores Cash ISA Reforms, Delays Decision Until Autumn Budget

Proposals to reduce cash ISA allowances to £4,000 are being considered to boost retail investment, with no changes expected before April 2026.

The UK Government confirmed it is considering reducing the cash ISA allowance from £20,000 to £4,000 to encourage investment in stocks and shares ISAs.
The Spring Statement revealed that while no immediate changes will occur, decisions on ISA reforms are expected in the Autumn Budget.
The Treasury aims to simplify the ISA framework and work with the Financial Conduct Authority to provide support for savers transitioning to investments.
Critics, including banks and financial experts, warn that reducing cash ISA allowances could harm cautious savers, retirees, and mortgage funding.
The overall ISA limit of £20,000 will remain unchanged until at least 2029/30, according to Treasury documents.