UK Parliament has published the Government’s response to the Treasury Committee’s report on the Cash ISA, setting out the Government’s rationale for the Chancellor’s planned reform to reduce the tax-free Cash ISA allowance to GBP 12,000 for people aged under 65 from 6 April 2027. The response, signed by the Economic Secretary to the Treasury Lucy Rigby MP, frames the change as part of the Government’s plans to encourage savers to invest, with the stated aim of enabling higher returns and longer-term financial resilience. The Committee’s October report had warned that cutting the Cash ISA allowance was unlikely to incentivise people to invest savings in stocks and shares; the Treasury Committee Chair, Dame Meg Hillier, reiterated concerns that the reforms could complicate the ISA landscape and confuse consumers, while noting that attention now turns to how the revised product will be delivered in practice.
UK Parliament 2026-01-14
UK Parliament publishes Government response backing Cash ISA allowance cut to GBP 12,000 for under-65s from 6 April 2027
The UK Parliament released the Government's response to the Treasury Committee's report on the Cash ISA, detailing plans to reduce the tax-free allowance to GBP 12,000 for those under 65 from April 2027. Economic Secretary Lucy Rigby MP argues the reform aims to encourage investment for higher returns and financial resilience. However, the Treasury Committee, led by Dame Meg Hillier, expressed concerns about potential consumer confusion and the reform's effectiveness in promoting investment.