2027 Cash ISA changes: what savers really think
This year’s research finds that, while the final allowance is higher than the £4,000 figure previously discussed, many savers remain concerned about the impact on their financial future, retirement planning and ability to achieve long-term savings goals.
Key findings
- 96% savers say ISAs are important to their financial future
- 89% of working age savers are concerned about the reduction in the Cash ISA allowance
- 76% of working age savers believe it will be harder to achieve their savings goals after the reduction
- More than half of working age savers believe it will impact their retirement plans
- 70% of savers do not feel comfortable moving money into a Stocks & Shares ISA, despite the reforms being designed to encourage greater investment
Here's what our savers told us:
- “It feels like £8,000 tax free savings being taken rather than £12,000 being retained!”
- “Up the limit, not reduce it, if you think I will invest the remaining balance in stocks & shares think again.”
- “It is the wrong message to the population to reduce the cash ISA limit. We should be a nation of savers as that promotes independence and financial security.”
- “The change for under 65s is unlikely to produce as much investment in stocks and shares ISAs as policymakers might desire and may even result in a drop in overall savings.”
- “Why should people be penalised for being responsible and saving for their future, especially those under 65.”
- “Stop penalising those who save responsibly.”
- “Don’t penalise those who act responsibly and try to save money in the best way possible.”
- “People should be able to choose where they invest, not be told by government.”
- “Allow everyone to choose how to split our own tax-free allowance between cash and stocks & shares.”
- “You won’t force me to invest in anything without a fixed interest rate. You are alienating people who are averse to risk.”
- “Forcing savers to risk their savings is not democratic and a disgrace.”
- “It is hard to accept responsibility for your financial future when government continually make short term decisions to a long-term savings approach. I fear for the savings habits of the next generation.”
- “People won’t invest in stocks and shares if they are planning for retirement, especially in the current financial climate”
- “Keep the current ISA limits to assist in retirement planning.”
- “It’s hard enough to save for retirement without the government making it harder.”
- “It is the wrong message to the population to reduce the cash ISA limit. We should be a nation of savers as that promotes independence and financial security.”
- “Good policy should encourage people, younger or older, to save more.”
- “There needs to be a vehicle for the ordinary person to save efficiently for the future to encourage a sense of financial safety.”
- “People need simple savings schemes like ISAs to encourage saving. Stocks and shares are off putting.”
What has changed since 2025?
Last year, over 1,250 Cash ISA savers shared their views on the proposed reforms. They overwhelmingly opposed reductions to the allowance and expressed concerns about being penalised for saving responsibly.
This year we saw almost double the number of responses, with nearly 2,500 ISA savers sharing their thoughts with us. And the message is clear: Cash ISAs are more important to people’s future plans than ever.
2025 vs 2026
Importance of ISAs
- 2025: All savers considered Cash ISAs important for their financial future.
- 2026: 96% still say ISAs are important for their financial future.
Retirement planning
- 2025: Retirement planning was one of the main reasons customers used Cash ISAs.
- 2026: More than half of working age savers believe the reduction could negatively affect their retirement plans.
Attitudes towards investing
- 2025: Just 9% of savers said they would move money into a Stocks & Shares ISA if the Cash ISA allowance was reduced.
- 2026: Just 7% say they would invest savings above the new £12,000 allowance in a Stocks & Shares ISA.
Feeling penalised for saving
- 2025: One of the strongest concerns was feeling penalised for saving responsibly.
- 2026: The same concern remains a recurring theme.
2026: Does £12,000 feel like a compromise?
When proposals to reduce the allowance first emerged, some reports suggested the limit could fall as low as £4,000.
£12,000 may be higher than the most widely reported proposals, but for many savers – especially the under 65s – it doesn’t feel like much of a middle ground.
Thank you to all our ISA savers who took part in this research.
We’ve published these results to represent the voice of our customers as best we can.
More?
Journalists can get in touch to see the full results of the survey.
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