Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, what assessment he has made of the potential economic impacts of the reduction in the Cash ISA tax free limit to £12,000 for under 65s from April 2027; and what assessment he has made of the impact of this reduction as it relates to age demographics.
Answered by Treasury
The government announced at Budget 2025 that it is keeping the full £20,000 ISA allowance for investment, and setting the cash ISA limit at £12,000 from April 2027. This is part of our wider strategy aimed at supporting people to get into investing, including Targeted Support, which launched in April. 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.
A policy costings note was published at Budget, and the Office for Budget Responsibility (OBR) also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances.
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