Martin Lewis says Budget cash ISA cut was the ‘wrong move’
Martin Lewis issues verdict on the Isa changes in Reeves’ Budget
- The Labour autumn Budget announced a reduction in the cash ISA limit from £20,000 to £12,000, while the stocks and shares ISA limit will remain at £20,000.
- This change is intended to incentivise younger savers to invest, with individuals over 65 years old being exempt from the new limit.
- Money expert Martin Lewis criticised the reduction, calling it the 'wrong move' and advocating for better financial education and incentives for investing rather than a 'stick approach'.
- Lewis conceded that the new £12,000 limit for cash ISAs remains relatively high for the majority of savers, requiring significant monthly savings to maximise.
- Tom Selby, director of public policy at AJ Bell, also expressed concern, urging the Chancellor to reconsider the 'ill-thought-out' reforms and gather evidence for effective ISA changes.