97% of savers make it clear: ‘Hands off our Cash ISAs’

Major survey from UK bank finds 97% of savers say reducing Cash ISA allowance a bad idea

Just 9% would move savings into intended Stocks & Shares ISA

Pensioners plead “don’t penalise our careful retirement planning” and call it an “attack on the older generation”

A major new survey has revealed immense resistance to the Government’s proposed changes to reduce the Cash ISA tax free allowance from £20,000 to as low as £4,000 – which an incredible 97% of Cash ISA savers oppose.

The findings from Hampshire Trust Bank (HTB) come just days ahead of Chancellor Rachel Reeves’ Mansion House speech, when she is expected to announce reforms aimed at encouraging investment in Stocks & Shares ISAs. The bank reveals just 9% of Cash ISA savers would turn to this option.

Key insights:

• Virtually all the bank’s Cash ISA savers say reducing the allowance is a bad idea
• 89% say cash-based, tax-free saving is critical to their financial future
• Just 9% would move their savings to a Stocks & Shares ISA
• Over 750 respondents left powerful personal messages pleading to policymakers.

The research paints a strikingly similar picture to concerns recently raised by Martin Lewis, who warned such changes would be ineffective and would frustrate many. Now, hard data from real ISA savers shows the opposition is very real and will be taken very personally.

Stuart Hulme, Managing Director of Savings at HTB, said:

There’s a misconception that Cash ISA savers will simply become investors in the stock market. Our customers have told us that’s just not true. Cash ISA savers are cautious by nature – many are older, reliant on the interest income to top up their pensions – and can’t afford to gamble with their future.

Our customers have spoken with clarity and conviction. These aren’t just numbers – they’re people who’ve planned, saved and now feel betrayed. They feel penalised, and as one saver put it, ‘at the age of 80 years old, I am not going to gamble my life savings in stocks and shares’.

Only 9% of Cash ISA savers said they would switch to a Stocks & Shares ISA, undermining the logic behind the proposed change. Rather than boosting investment, the policy discourages cash savings. Many savers told us they’d respond better to Stocks & Shares incentives over Cash ISA reductions.

The Treasury thinks this will gently steer savers towards investing – but our customers see it differently. To them, this isn’t a nudge – it’s a shove into uncertainty.

Respondents expressed anxiety over being pushed into the stock market, facing new tax burdens, or losing access to what many see as a stable savings option in an uncertain economy.

• “Ridiculous reduction – lower than ever before”
• “For goodness sake, give us an incentive to save”
• “Stop taking positive risk averse saving options away from regular and responsible savers.”

The bank’s survey suggests the Government risks failing to boost investment and alienating millions of responsible savers if it proceeds with the reforms.

The bank’s full findings can be found at htb.co.uk/CashISALimits/