Overview
- Reports linked to the Financial Times say ministers are considering cutting the annual cash ISA limit from £20,000 to about £10,000 to steer savings toward equities, though nothing has been confirmed.
- The Treasury says it will protect cash savings and reiterates the Chancellor’s aim to get Britain investing so companies can grow and willing savers can seek higher returns.
- Parliament’s Treasury Committee cautions that a cut is not the right move, warning it may fail to lift the stock market and could even put upward pressure on mortgage rates.
- Financial commentators advise using the current £20,000 allowance ahead of the 26 November Budget or by 5 April 2026, while Martin Lewis urges against panic because any change would likely affect future contributions rather than existing ISA balances.
- Separate reporting suggests a potential £2,000 cap on tax-free pension salary sacrifice, prompting warnings from employers that it could reduce pension generosity and weigh on hiring.