“Rachel Reeves must not cut cash ISA limit to £4,000”

A £4,000 limit on the amount you can put in a cash ISA is an unnecessary attack on savers and should not be the priority, says Jessica Sheldon.

Rachel Reeves pictured at meeting in Canary Wharf, London
Rachel Reeves is reportedly being lobbied to announce a £4,000 annual limit on cash ISAs
(Image credit: Jordan Pettitt - WPA Pool/Getty Images)

Soaring living costs have dented disposable income and frozen income tax bands (which is effectively a tax rise) only make it more difficult to save. Even when we can afford to set aside money for the future, improved interest rates and frozen tax allowances mean savers are at risk of being taxed on the interest.

Cash ISAs have become far more attractive in recent years for this very reason. Adult cash ISA balances increased by £38.5 billion between January and October 2024, compared to £9.5 billion for adult non-ISA accounts, according to consultancy CACI.

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Jessica Sheldon
Deputy Digital Editor

Jessica is a financial journalist with extensive experience in digital publishing.

She was previously Digital Finance Editor at GB News and Personal Finance Editor at Express.co.uk. She enjoys writing about savings, pensions and tax, and is passionate about promoting financial education.