CONFIRMED: Healey reverses cuts to cash ISA allowances

friolento

EDIT: Just confirmed by the Chancellor - the £20k limit on cash ISA stays for all.

Also: new "starter ISA" coming, whatever that may mean. Details will emerge soon.

Let’s hope this sensible move is true 🤞

https://www.reuters.com/world/uk/uks-healey-reverse-cuts-cash-isa-allowances-ft-reports-2026-10-27/

friolento

FT article:https://www.ft.com/content/619978f5-4400-4bf0-8b1f-4cf62bee9774?syn-25a6b1a6=1

may be paywalled. We’ll know in a short few hours, in any case.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82183646#Comment_82183646

Fingers crossed the silly new rules are scrapped but the FT thinks there’s some substance.

From the FT article linked above:
”Multiple people familiar with discussions told the FT that Healey had decided to reverse the cut to the Isaallowance, which had been announced by his predecessor Rachel Reeves in an attempt to funnel cash into UK companies.

The Treasury declined to comment on “speculation”. However, one person close to events said Healey had concluded it was “better to use a carrot than a stick” to persuade people to invest in the stock market.”

zagfles

Maybe they'll cap cash ISAs instead…

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82183736#Comment_82183736

However, one person close to events said Healey had concluded it was “better to use a carrot than a stick” to persuade people to invest in the stock market.”

Also the added complexity to ISA rules, which many people are already confused about, would point to scrapping the idea as well.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82183802#Comment_82183802

Yes, and it should have been scrapped the moment they realised they weren’t going to be able to ban ‘cash like’ securities this time. Instead they tried to push on with the nonsense that £1 in equities and the rest in cash like would be okay.

Assuming this comes to pass, I’m a little disappointed as I was looking forward to all the workaround threads. 😁

friolento

better to use a carrot than a stick to persuade people to invest in the stock market.

Couldn't agree more. What's needed to start with is education, so people understand what investments are and how to make them work to their benefit.

infj

Let's hope it's true - it was always a solution looking for a problem!

Although judging by the no of threads started on here asking about how to invest, it did make people think about it more - so maybe a tiny sliver of an effect? But the time and energy wasted by savers and financial firms preparing for it probably massively outweighs that…………..

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82183910#Comment_82183910

It was planned as a 'nudge' and from that point of view it was quite a good idea, and as you say seems to have had some effect . Probably helped by Martin Lewis talking more about investments in his shows,

However the implimentation is messy and adding more ISA rules to the mix.

eskbanker

It was planned as a 'nfudge'…

Fixed that for you 😉

eskbanker

Cash ISA changes now confirmed as reversed…