Cash ISA U-turn: interactive investor comments
Chancellor Rachel Reeves appears to have backtracked on plans to reduce the cash ISA limit.
11th July 2025 12:14
Richard Wilson, chief executive at interactive investor, says: “It now appears Rachel Reeves has backtracked on plans to reduce the cash ISA limit. This is welcome news if true, but the chancellor’s fumbling and indecision means that the overall goal of ISA simplification has been delayed completely. We need action to cut the needless complexity. We’ve said it time and time again – there only needs to be one ISA.”
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Craig Rickman, personal finance expert at interactive investor, adds: “Adjusting the cash ISA limit was never the silver bullet to transform Brits into a nation of investors. To achieve this laudable aim, a broader push is required, one that seeks to improve financial education and knowledge, so that people recognise the merits of investing in the stock market, rather than parking their long-term savings in cash accounts.
“Cash has a crucial role to play in any well-balanced investment portfolio. The security, certainty and accessibility on offer means it’s perfectly suited to provide a safety net for emergencies and save towards more immediate financial goals, where the ups and downs of markets are best avoided.
“However, over longer periods, stashing too much cash can be harmful, acting as a drag on how quickly your money grows, potentially leaving you with a smaller pot when the times comes to draw from your wealth.
“The government, regulators and providers are all on the hook to help consumers discern the scenarios where either cash or stocks and shares is most appropriate. The FCA’s proposed regime of targeted support, which will enable providers to nudge consumers towards appropriate financial decisions, is a giant step in the right direction. But still more needs to be done to furnish consumers with sufficient confidence and assistance to manage their money in the right way for them.”
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