Andrew Gall, Head of Savings at the Building Societies Association commented:

"We welcome the Government providing greater clarity on its proposed ISA reforms. It is vital that savers have clear information and sufficient time to understand how the changes will affect them and the choices available to them from April 2027. Building societies also need certainty on the final rules so they can update systems and communicate with their members well ahead of implementation.

"We are pleased that Government has taken steps to prevent Stocks & Shares ISAs being used to circumvent the reduced Cash ISA limit and will be looking to HMRC to monitor the use of cash-like instruments closely.

"Cash ISAs remain an important savings product for millions of people. In 2025, building societies paid £2.1 billion more in interest to savers than they would have received from the average rates offered by the major banks, demonstrating the value strong competition delivers for consumers."

First-time buyer ISA consultation

"Building societies are particularly interested in the proposed First-time buyer ISA and we look forward to working with Government to develop a simple product that helps more people achieve homeownership. We welcome that the proposals allow savers to access their money without penalty if their circumstances change, while ensuring first-time buyers can release money in good time to support the purchase of their new home."

Notes

ISA reform 2027: anti-circumvention rules factsheet
First-time Buyer ISA Consultation,