Retaining the cash ISA limit at £20,000

The measure

The government will retain the cash ISA limit at £20,000 for all savers aged 65 and under from April 2027, reversing the planned reduction to £12,000 for such savers announced at Autumn Budget 2025. This change will be made by secondary legislation to be laid before Parliament in November 2026. 

The government has decided not to reduce the cash ISA limit for those aged 65 and under, stating this is to continue providing generous support for savers.  

It also announced it will work with the investment industry to explore a new ISA incentive for people investing in a Stocks and Shares ISA for the first time, with the detailed design to be developed with industry.  

Who will be affected?

Individual savers aged 65 and under. 

When will the measure come into effect?

The £20,000 cash ISA limit is retained from April 2027, implemented by secondary legislation to be laid before Parliament in November 2026. The timing and detail of the new Stocks and Shares ISA incentive for first-time investors will follow further work with industry.