Martin Lewis: Cash ISA limit could be cut – this is 'p*ss people off economics'

MSE_Molly_G

Reports in various newspapers, including the Financial Times, suggest that the Chancellor Rachel Reeves will announce a cut to the £20,000 cash ISA limit during her Mansion House speech on Tuesday 15 July. MoneySavingExpert.com founder Martin Lewis has reacted to the news, calling the potential cut "a mistake".

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Martin Lewis: Cash ISA limit could be cut – this isn't 'nudge economics', it's 'p*ss people off economics'

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RedImp_2

Obviously there are rumours / leaks rather than announcements but the Telegraph are reporting that Chancellor will likely announce changes to Cash ISAs in speech on July 15.

HedgehogRulez

Exciting!!

subjecttocontract

Can't wait !

4justice2

Also same story reported in the FT today......

Hoenir

Be no changes mid tax year that's one certainty. 

TheTelltaleChart

The rumour I'm hearing is that the cash ISA limit will be reduced by £1000 for each new topic about it on this forum.

RogerPensionGuy

This possible reduction in the mini cash ISA has been mooted about a lot for a long time like so much stuff they do, pensions instability and the near impossible way they make pension planning a game of luck is my personal buggbear. 

Although maybe some people put too much % of wealth in mini cash ISAs and may of got/get more gains via other investment vehicles like S&S ISAs, it is their choice. 

Any reduction in the mini cash ISA will get lots of unwanted unhappy press/feelings and looking around, I will guess this outcome will be unwanted at this time, so I'll guess this bone will be left alone for now. 

Kim_13

I doubt anyone would dispute that it shouldn’t be possible to save more tax free than can be earned tax free - but a sensible policy where the tax free allowance went up slightly and the ISA limit went down to pay for it would be expected. This just reduces choice, and there comes a point when investing 75% or whatever the figure may be is reckless. One size does not fit all.

I wonder if we will see a return of the Mini/Maxi naming.

Middle_of_the_Road

RogerPensionGuy said:

This possible reduction in the mini cash ISA has been mooted about a lot for a long time like so much stuff they do, pensions instability and the near impossible way they make pension planning a game of luck is my personal buggbear. 

Although maybe some people put too much % of wealth in mini cash ISAs and may of got/get more gains via other investment vehicles like S&S ISAs, it is their choice. 

Any reduction in the mini cash ISA will get lots of unwanted unhappy press/feelings and looking around, I will guess this outcome will be unwanted at this time, so I'll guess this bone will be left alone for now. 

What are you meaning by "mini cash ISA"?

mebu60

RogerPensionGuy said:

This possible reduction in the mini cash ISA has been mooted about a lot for a long time like so much stuff they do, pensions instability and the near impossible way they make pension planning a game of luck is my personal buggbear. 

Although maybe some people put too much % of wealth in mini cash ISAs and may of got/get more gains via other investment vehicles like S&S ISAs, it is their choice. 

Any reduction in the mini cash ISA will get lots of unwanted unhappy press/feelings and looking around, I will guess this outcome will be unwanted at this time, so I'll guess this bone will be left alone for now. 

The mini/maxi distinctions went somewhere around 2008. S&S limit was £7k but most you could hold in cash ISA was £3k. There was also an insurance product up to £1k.