Building Societies: Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, what assessment she has been made of the potential impact of proposed changes to the annual subscription limit of ISA savings for under-65s on the range of building society lending products.
Answered by Lucy Rigby
This government’s number one priority is growth, putting more money in people’s pockets and creating an economy that both works for and rewards working people.
A key part of this is people’s savings, which are not working hard enough for them or the economy because hundreds of millions of pounds are sitting in low-interest earning accounts.
We want to get more people investing so they can also benefit from the growth of the FTSE which has grown by 50% in the last 5 years.
Investing generates better returns over the long term, and this is about getting the balance right cash savings and investment. If you invested £1,000 a year in an average stocks and shares ISA every year from 1999, you would be £50,000 better off compared to having saved the same amount in a cash ISA
This policy will affect those aged under 65 from April 2027, but the overall ISA limit will remain at £20,000 for all savers when the annual Cash ISA limit is set at £12,000. It will not affect existing cash ISA savings.
The government regularly engages with the building societies sector to understand how best to support its growth.
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