Commenting on the report, Robin Fieth, Chief Executive of the Building Societies Association, said:

“We welcome this thoughtful report from the Treasury Committee which rightly recognises the vital role Cash ISAs play in supporting savers. We strongly agree with the recommendation not to cut the Cash ISA limit and we support efforts to encourage more people to invest through better awareness and education. However, undermining a successful savings product is not the way to achieve that.”

“Cutting the Cash ISA allowance is all downside. It won’t encourage investment. it will simply undermine savings habits and make mortgages more expensive.”

“This is ultimately a question of fairness. Cutting the Cash ISA limit benefits those with significant financial resources who can access other investment options to continue to build their wealth. Meanwhile working people and pensioners - who may have smaller savings pots and a lower risk tolerance - will lose a trusted way to grow their savings securely, including the opportunity to put a small inheritance or pension lump sum into their Cash ISA.”

[ENDS]

Contact: pressoffice@bsa.org.uk

View the report here: https://committees.parliament.uk/committee/158/treasury-committee/news/209846/government-should-not-cut-the-cash-isa-allowance/