Alex Sitaras, Head of Savings and Partnership Products
23 July 2025
Not now but not never. There has been speculation the annual Cash ISA allowance was going to be cut from £20,000 to £4,000. But savers can breathe a little easier. Rachel Reeves has pushed back reform plans, for the moment at least.
In July, the chancellor delivered the traditional Mansion House speech, where the government outlines its intentions on personal finances. Reeves shared proposals on pensions and mortgages, but shelved ISA changes.
And that gives you a great opportunity to make more from your savings. Especially as we have just launched a new Cash ISA. Read on to find out more.
Is the Cash ISA limit changing?
For more than 25 years, Cash ISAs have proven a valuable option for savvy savers. They allow you to grow your money by earning tax-free interest, which can make a real difference to your ability to achieve your financial goals. You can also use your annual allowance to invest in Stocks and Shares ISAs.
In recent months, Cash ISAs have come under the spotlight. Reeves has been urged to reduce the annual allowance on Cash ISAs, to encourage people to invest their money instead. The rumour mill has swirled, especially in the run-up to the July Mansion House speech. Reeves ultimately hasn’t changed the allowance yet, but has pledged to make it easier for people to invest.
At Skipton we can certainly get behind any moves to help people consider investing their money.
- We offer personalised financial advice that could help you to plan for your long-term goals.
- This includes investing into a Stocks and Shares ISA.
- It depends on your personal circumstances and if you’d be comfortable accepting some risk to your money. But over the long-term, investing could give you a better chance of achieving higher returns than savings accounts.
- We firmly believe there is a lot of value in considering investing alongside saving, and we’re here to help you plan for your different goals and build an overall strategy.
However, that doesn’t mean we support moves to diminish the value of Cash ISAs.
Why is keeping the Cash ISA allowance at £20,000 important?
Investing in a Stocks and Shares ISA is only suitable for financial needs five or more years away. Understandably, you might have important goals for your money that are more short-term than that. For example, saving for your next holiday, a new car, or significant life event.
For these objectives, the ability to be able to save tax-free could make all the difference.
That’s why the annual Cash ISA allowance of £20,000 is such an important opportunity. Taking it away could make it harder for you to achieve your goals. Especially as it’s widely expected the Bank of England will keep reducing interest rates.
Scaling back the annual Cash ISA allowance at the same time as savings rates potentially fall would make it even tougher for savers. That’s why you now have such an important window of opportunity.
How do you take advantage of the Cash ISA reprieve?
I’ve got four tips for you on this. Whichever of these ideas might appeal to you, it’s better to act quickly.
Consider making use of your annual ISA allowance while it remains as generous as it is now
At Skipton, we have launched a new Cash ISA account that lets you do just that.
We’re calling it the Annual Allowance Cash ISA. It gives you the ability to use your remaining 2025/26 tax year allowance and earn tax-free interest. Find out how to open an Annual Allowance Cash ISA.
Think about the different Cash ISA options available for your goals
Depending on your needs, you could choose to save in one of our Easy Access Cash ISAs (which allow you to access your money when you need it) or Fixed Rate Cash ISAs (where you could get a higher level of interest, if you can commit your savings for a set period).
Seek help and support deciding what to do with your savings
- We’re here to do just that for you by offering free advice with a My Money Review
- Our friendly savings specialists can talk to you about your goals and provide personalised recommendations.
- There’s no pressure to act on this advice – and there’s no charge.
A My Money Review can take place at your nearest Skipton branch or online using our Skipton Link video service. It typically takes no more than an hour, and can set you up for making informed decisions on getting your savings working harder.
Think about the benefits of investing for your long-term goals
If you’re happy to consider this, we can arrange a no-obligation review with one of our financial advisers. That way you can develop plans for both your immediate needs and your future objectives.
Don’t wait to see if Cash ISA rules change – take control of your financial future now.
Stocks and Shares ISAs aren't like bank and building society savings accounts as your money is at risk and you may get back less than you invested. The tax treatment of savings and investments depends on personal circumstances. Tax rules may change in the future.
