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Martin Lewis warns savers of 'different restriction' despite Reeves backing down on Cash ISA shakeupChancellor Rachel Reeves has appeared to back down on plans to slash the cash Isa

allowance, but money expert Martin Lewis has warned that savers shouldn't get too comfortableCommentsNewsAlexandra Snow02:57, 22 May 2025Updated 03:26, 22 May 2025Reeves said she is not

going to reduce the limit of the Cash ISAs (Image: Andrew Harnik, Getty Images) Labour officials have been poring over strategies to nudge savers towards the stock markets, with a Treasury

minister previously suggesting that "hundreds of billions of pounds in cash ISAs" are being diverted from the London Stock Exchange.

Chancellor Rachel Reeves made her position clear to the BBC, saying: "I'm not going to reduce the limit of what people can put into an ISA. I absolutely want to preserve that £20,000

tax-free investment that people can make every year.

‌ "But I do want people to get better returns on their savings, whether that's in a pension or in their day-to-day savings."

‌Martin Lewis said he thinks something will come in the Autumn Statement(Image: Ken McKay/ITV/REX/Shutterstock) Yet, Money Saving Expert guru Martin Lewis sounded a note of caution about

this commitment.

He mused on X: "Reading between the lines its seems that, she is still considering announcing a cut specifically to the cash ISA allowance for new money (rumoured from current £20k down to

as low as £4k) as part of Autumn Statement."

Article continues below While Reeves may have backpedalled on slashing the Cash ISA allowance, her determination to coax savers into the stock market remains steadfast. She also imparted to

the BBC: "At the moment, a lot of money is put into cash or bonds when it could be invested in equities, in stock markets, and earn a better return for people."

The Chancellor is expected to launch a consultation to gain views across the City of London into how the Isa market could be reformed. The Government hinted at at radical shake-up of Isas in

the Treasury's Spring Statement document.

At the time, the Government said it wanted to "get the balance right between cash and equities to earn better returns for savers" and "boost the culture of retail investment".

‌Reeves wants people to invest more in the stock market(Image: Getty) Lewis elaborated on why the statement might not be as straightforward as it seems, stating: "They were done in the (I

suspect mostly forlorn) hope people will shift to investing that money, as the investment (and total) ISA limit would stay at £20,000 or even rise.

"In my view better investment education, communication and widespread accessible guidance would be a more effective way to the same goal."

Article continues below Currently, Britons have an annual £20,000 tax-free allowance and they can choose to have a stocks and shares version, a cash version, or split between the two as they

see fit.

But rumours have persisted in recent months that the cash element could be cut to as low as £4,000 a year to push more people into investing.

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