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Budget Cash ISA Limit Cut to £12,000 May Not Encourage Investment Say Experts
The Treasury Committee says cutting the £20,000 cash ISA limit to £12,000 is unlikely to encourage more investment and highlights the need to close the financial advice gap.
- The Treasury Committee urged the Government not to cut the cash ISA limit, citing that it would be unlikely to incentivise savers, amid reports it could be reduced to £20,000.
- Amid months of rumours, policymakers examined cutting the cash ISA allowance to shift money into British stocks and shares, with the Treasury hoping to grow annual investment inflows.
- Official statistics indicate rising ISA subscriptions driven by cash accounts, with around 15 million adult ISA accounts subscribed in 2023/24 and cash ISAs increasing by 27.9 billion, HMRC data show.
- Industry experts said a cut is unlikely to shift saver behaviour, with Sarah Coles noting no evidence it would boost investing, while building societies warned reduced ISA inflows could raise mortgage funding costs.
- Reeves announced a carve-out for over-65s, keeping their full cash allowance, while over 50% of the ISA market pledged online hubs to guide savers into investment from April 2027.
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24 Articles
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Total News Sources24
Leaning Left3Leaning Right0Center16Last UpdatedBias Distribution84% Center
Bias Distribution
- 84% of the sources are Center
84% Center
L 16%
C 84%
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