Overview

• 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.