Chancellor John Healey confirms in the Commons that the planned cut to the cash ISA limit will not go ahead. The FT reported the reversal on Tuesday. The limit stays at £20,000 a year instead of falling to £12,000 from April 2027, City AM reports.
"I will not go ahead with the cut to the tax-free amount that people can put into a cash ISA. The limit will stay at £20,000 per year, tax-free, for people of all ages"
The limit applies to all ages. Under the plan set out in Autumn Budget 2025, the lower cap was to apply to under-65s, with over-65s keeping the current allowance.
Healey also said he would work with the investment industry on a new Starter ISA for first-time investors. He told MPs: "I will work with the sector to create a new Starter ISA to reward first-time investors." He gave no detail of how it would work, Portfolio Adviser reports.
Healey said 88% of people will pay no more tax on their savings, according to PA. That figure has not been independently checked.