Darlington Building Society’s chief executive has urged UK savers, particularly everyday and low-income savers, not to sleepwalk into missing out on the full benefits of their 2025 ISA allowance – warning that “savers risk handing over more of their hard-earned interest if their savings aren’t in the best accounts to suit their needs”.
With rumours that the current ISA allowance could be cut, experts are urging savers to act now to make the most of their tax-free savings while they still can. ISAs are firmly back in the spotlight as a way to save tax-free up to the £20,000 allowance.
“The message needs to be understood, if you’ve got money sitting in a savings account or a regular account and you’re not using your ISA allowance, you could be losing out,” said Andrew Craddock. “Once the tax year ends, you can’t carry it forward. It’s unfortunately a case of use it or lose it, and we’re most concerned about low-income families who will find saving difficult in the first place.”
According to a nationally representative survey conducted by Darlington Building Society, more than six in ten (63.7%) people with a household income under £17,000 say they have no savings at all. This compares with just 8.2% of those earning between £100,000 and £149,999 – underlining a widening gap in financial resilience between the lowest and highest earners.*
Currently, UK savers can save up to £20,000 tax-free in a cash ISA each tax year – but millions leave their full allowance untouched, and many still don’t realise that interest earned outside of an ISA now counts towards their personal savings allowance, which has not risen in line with inflation.
“Savers have faced huge uncertainty over the past few years,” added Andrew Craddock. “But now that interest rates are more favourable, it’s vital people know first, what options are available to them, and secondly, how to maximise their returns. For lower income savers, it’s important to plan ahead to maximise the timeframe of the ISA allowance, as saving little and often throughout the year also helps to build up a savings buffer. When March 2026 or an announcement on the ISA allowance comes, it may be too late to make a significant deposit if disposable cash isn’t available in a lump sum in the same way it could be for higher-income savers.”
Darlington Building Society encourage savers to take action early in the tax year to get the most from their allowance, and not wait until March 2026 or until an announcement is made. There has been persistent rumours that a reduction in the £20,000 tax-free allowance could be on the horizon.
“Top up regularly, shop around, and speak to someone if you’re unsure,” Andrew said. “We’ve seen growing interest in ISAs at branch level – people want security, but they also want to know their savings are working hard, tax-free.”
The Society offers a range of cash ISA options and says it is focused on offering accessible advice to savers in its branch locations and nationwide online.
