Reeves' ISA review

Ocelot

Kim_13 said:

VNX said:

bristolleedsfan said:

https://www.telegraph.co.uk/business/2025/05/19/reeves-backs-down-on-plans-to-cut-cash-isa-limit/

"Speaking to the BBC on Monday, Ms Reeves said: “I’m not going to reduce the limit of what people can put into an Isa, but I do want people to get better returns on their savings, whether that’s in a pension or in their day-to-day savings"

Once again the hype panic any hysteria comes to nothing 

She has said UK adults will still get a £20,000 ISA allowance, but that the cash element of that might be restricted to as little as 20% of it was what was panicing people. That hasn’t gone away, given she hasn’t said cash will be at least 50% of the total (or similar.) It surprises me that the same papers who were reporting on the cut are so busy reporting this as a climbdown that they’ve missed that that isn’t what she’s done. If she wants people to get better returns, then reducing the cash allowance must still be on the table.

They may ultimately get better returns, but it could take years of stock market investment.

ranciduk

It’s almost as though the Daily Mail and The Daily Express have being spouting absolute nonsense and just making stuff up

they will now probably spin it as Labour in humiliating U-turn thanks to our campaign to protect savers

From something that was totally made up 

absolutely pathetic 

Alpine_Star

ranciduk said:

It’s almost as though the Daily Mail and The Daily Express have being spouting absolute nonsense and just making stuff up

they will now probably spin it as Labour in humiliating U-turn thanks to our campaign to protect savers

From something that was totally made up 

absolutely pathetic 

To be fair to the Express, they were quick to question how the Reeves BBC interview was being reported.

Has Rachel Reeves just saved Cash ISA - or is she plotting something? | Personal Finance | Finance | Express.co.uk

wmb194

ranciduk said:

It’s almost as though the Daily Mail and The Daily Express have being spouting absolute nonsense and just making stuff up

they will now probably spin it as Labour in humiliating U-turn thanks to our campaign to protect savers

From something that was totally made up 

absolutely pathetic 

No, there’s definitely something going on. A review of Isas was mentioned in the last budget statement.

“In the document, the government said: “The government is looking at options for reforms to Individual Savings Accounts that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission. 

“Alongside this, the government is working closely with the Financial Conduct Authority to deliver a system of targeted support to give people the confidence to invest.”’

https://www.morningstar.co.uk/uk/news/262611/rachel-reeves-pledges-cash-isa-reform-in-spring-statement.aspx

booneruk

Well, they could just give everyone an extra 10k on their ISAs that can only be invested in S&S. Everyone's assuming nasty old Rachel is going to steal away their ability to save cash.

The Express does make me laugh though. Those headlines...

Albermarle

booneruk said:

Well, they could just give everyone an extra 10k on their ISAs that can only be invested in S&S. Everyone's assuming nasty old Rachel is going to steal away their ability to save cash.

The Express does make me laugh though. Those headlines...

As far as I can see from the clickbait headlines on MSN, the DE/DT/GB news/Mail and others are reporting on this subject pretty much every day.
Seems to be an excessive amount of media attention for some reason. Normally the subject of Cash ISAs would put most people to sleep, or be irrelevant for those large amount of people with no/low savings. 

Sea_Shell

Albermarle said:

booneruk said:

Well, they could just give everyone an extra 10k on their ISAs that can only be invested in S&S. Everyone's assuming nasty old Rachel is going to steal away their ability to save cash.

The Express does make me laugh though. Those headlines...

As far as I can see from the clickbait headlines on MSN, the DE/DT/GB news/Mail and others are reporting on this subject pretty much every day.
Seems to be an excessive amount of media attention for some reason. Normally the subject of Cash ISAs would put most people to sleep, or be irrelevant for those large amount of people with no/low savings. 

But it hits a nerve with a certain demographic.

Those most likely to vote
Those with more modest savings 
Those who don't want to invest in the (short) time they have left.

booneruk

Sea_Shell said:

Albermarle said:

booneruk said:

Well, they could just give everyone an extra 10k on their ISAs that can only be invested in S&S. Everyone's assuming nasty old Rachel is going to steal away their ability to save cash.

The Express does make me laugh though. Those headlines...

As far as I can see from the clickbait headlines on MSN, the DE/DT/GB news/Mail and others are reporting on this subject pretty much every day.
Seems to be an excessive amount of media attention for some reason. Normally the subject of Cash ISAs would put most people to sleep, or be irrelevant for those large amount of people with no/low savings. 

But it hits a nerve with a certain demographic.

Those most likely to vote
Those with more modest savings 
Those who don't want to invest in the (short) time they have left.

I think it's more a mutual desire between the papers and their readership to continually ramp up the outrage, and since there's no solid information it is a complete spectacle and no good for the blood pressure. 

Everyone should relax. Take action when/if anything happens.

'Those' people could also continue to save in cash if ISA allowances are reduced. Traditional savings accounts, short dated Gilts in a GIA, even cash like investments in a S&S isa. They could also stuff money under the mattress, use premium bonds etc. And if 'time left' is that short, why would one need to be sitting on a mountain of cash? Spend it

Alpine_Star

Telegraph:

gt94sss2

I wonder how any changes would impact the ability to transfer between different types of ISAs.