UK Government Weighs Changes to Cash ISA Allowances to Boost Investment

Speculation grows over potential adjustments to Cash ISAs as ministers consider encouraging more investment in stocks and shares.

The UK Treasury is reportedly considering reducing or eliminating Cash ISA allowances to promote investment in Stocks and Shares ISAs.
Cash ISAs currently allow savers to deposit up to £20,000 annually tax-free, with over 18 million Britons holding such accounts.
City Minister Emma Reynolds and investment firms argue that shifting savings to investments could generate higher returns and support economic growth.
Critics warn that scrapping or limiting Cash ISAs could harm risk-averse savers, retirees, and those relying on these accounts for emergency funds.
No formal decisions have been made, and any changes would likely take effect from April 2026, following further discussions and the next Autumn Budget.