The Cash ISA limit is unlikely to change in the immediate future but the Government plans to consult further.
We’ve been campaigning directly to the Government, and working alongside the Building Societies Association, to urge the Chancellor to keep the current £20,000 Cash ISA limit.
Why this matters
The proposal to reduce the limit to as little as £4,000 would risk forcing many savers into higher-risk Stocks and Shares ISAs, that might not suit their needs or risk appetite.
Brian Stobbs, customer at our Consett branch
“I’ve been a loyal Cash ISA saver since the 1990s. My ISA provides the access and freedom my wife and I need to enjoy retirement on our terms. Forcing me into a risky product undermines everything a Cash ISA stands for.”
Cash ISAs have been a bedrock of accessible, low-risk savings for millions of people across the UK for decades, underpinning everyday savings habits.
Speaking up for savers
Having spoken to our customers, it’s clear that any reduction to the Cash ISA limit could not only fail to deliver the Government's intended outcome, but also create issues for ordinary savers – especially older savers and lower-income households.
John Clayton, customer at our Carlisle branch said: “We carefully manage our finances and the certainty of a fixed return is important to us. It’s wrong that the Government is effectively nudging people towards the stock market. It’s people’s own hard-earned money and I believe that this decision should rest with them – not be influenced by Government policy that steers them down one route.”
Read our findings
Our joint report, ‘Consumer Risks Associated with Proposed Changes to Cash ISA Regime’, lays out our findings in full.
What's next?
While the pause on the Cash ISA change is welcome, the future is still not clear, so we remain cautious. We will continue to:
- Engage with policymakers to ensure future ISA proposals safeguard consumer choice and financial security.
- Promote existing transfer flexibility, helping members balance between cash and investment ISAs when it suits them.
- Provide clear advice and information, so members can make informed decisions about their savings and investments.
