Martin Lewis says Budget cash ISA cut was the ‘wrong move’
Why Martin Lewis thinks Rachel Reeves made the ‘wrong move’ with Budget decision
- Labour's 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.
- The change is intended to encourage 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 incentives and better financial education rather than a 'stick approach'.
- Lewis conceded that the new £12,000 cash ISA limit remains relatively high for most savers, requiring substantial monthly contributions to maximise.
- Industry figures, including Tom Selby from AJ Bell, also expressed concern, urging the Chancellor to reconsider what they described as 'ill-thought-out' and 'half-baked reforms'.