Spring Statement 25: Govt looking at options to tackle Cash ISA 'hoarding' concerns

Any reforms 'must be handled with care'

Jenna Brown
clock • 6 min read

The government is investigating ISA reform options to tackle what has been described as Cash ISA “hoarding” which results in savers missing out on potentially higher returns from Stocks and Shares ISAs.

Treasury documents released after the Spring Statement said the planned ISA reforms wanted to "strike the right balance" between cash and equities to earn "better returns for savers, boost the culture of retail investment and support the growth mission". The practice of maximising Cash ISA limits over Stocks and Shares allowances has been called Cash ISA "hoarding" by provider AJ Bell. The firm has long called for ISA reform and simplification. The Treasury document added that alongside this, the government is working closely with the Financial Conduct Authority (FCA) to deliver a sys...

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