The UK government has doubled down on its decision to cut the cash ISA allowance for under-65s, dismissing concerns from MPs that it won’t incentivise people to invest in stocks and shares.
The cash ISA allowance in the UK will be reduced to £12,000 per year for people under 65 from April 2027.
In a response published yesterday, economic secretary to the Treasury, Lucy Rigby, said the government “wants to see more people benefit from the higher returns and long-term financial resilience that investing can provide”.
Commenting on the response, chair of the Treasury Committee, dame Meg Hillier, said: “The Treasury’s ambition is commendable, but I remain to be convinced that these reforms will drive the cultural change that Ministers want to see.
“In her proposed changes, the Chancellor risks complicating the ISA landscape and confusing consumers. It is now clear where the Government stands on the issue. The next step is to see how this complex product will be delivered in the real world.”
