As the Chancellor prepares to unveil potential ISA reforms in the upcoming Mansion House speech, Nottingham Building Society is urging policymakers to put savers at the heart of any changes. Speaking ahead of the announcement, Harriet Guevara, Chief Savings Officer at the mutual, highlights fresh data revealing strong public support for maintaining the current Cash ISA allowance.
Harriet Guevara, Chief Savings Officer at Nottingham Building Society, comments ahead of Mansion House on potential ISA reform: “As we await potential ISA reforms in the Mansion House speech, it’s vital that the government listens to what savers are telling us. Our data shows that more than half of savers oppose any reduction to the Cash ISA allowance, rising to over three-quarters among the over-55s. For many, this isn’t just about tax efficiency, it’s about having a secure, accessible way to build an emergency fund, save for retirement or put down a deposit on a home.
“What’s more, more than half of our fixed ISA customers used the full £20,000 allowance last year, rising to 65% among our branch savers. This tells us that large numbers of people are actively relying on all of the current allowance to meet their long-term financial goals.
“Cash ISAs remain a powerful tool for financial resilience. Yet if the allowance is cut, one in three savers say they’d simply save less, and only 38% would consider switching to riskier stocks and shares options. Among 25–34 year olds, two in five say such a change could impact their ability to buy a home, exactly the kind of long-term aspiration we should be supporting.
“But it’s not just about savers, it’s about borrowers too. ISAs held with mutuals like Nottingham Building Society directly support lending to aspiring homeowners. Cutting the Cash ISA limit risks limiting that lending power, which runs counter to Labour’s own ambition to double the size of the mutual sector.
“The government’s review is an opportunity to modernise the ISA system, but reforms must be centred around savers’ needs, not at their expense. Optionality, simplicity and flexibility should be the guiding principles. Restricting the Cash ISA risks pushing people into products they don’t fully understand, or out of the savings habit altogether.”
Data* from Nottingham Building Society:
- Nottingham Building Society research shows that only 38% of Cash ISA holders would consider switching to a Stocks and Shares ISA if the allowance is cut, while one in three – equivalent to an estimated 2.5 million people – say they’d simply save less.
- Nottingham Building Society data also revealed a fifth (20%) of Cash ISA savers say a cut to the allowance would affect their ability to put down a deposit on a home – rising to 41% among 25–34-year-olds – while 34% fear it would hit their retirement saving, and 36% say it would harm their ability to build an emergency fund.
- Nottingham Building Society data shows that 55% of all savers oppose the move, rising to 76% of over-55s. 78% believe the government should be encouraging tax-free saving through tools like Cash ISAs – not discouraging it.
*All data is from 2,003 UK respondents who have or have previously had Cash ISAs (18+). The data was collected between 20.0225 – 25.02.25 by Censuswide
Internal data from Nottingham Building Society:
- 64% of Nottingham Building Society customers used their full allowance for Fixed Cash ISA accounts in 2024–25, and similar figures across both online and branch channels.
