Cash ISA changes: what savers need to know
Published: 28 October 2026
Is the cash ISA limit changing?
No, the cash ISA limit isn’t changing.
People have been able to save the full ISA allowance (currently £20,000) in a cash ISA, enjoying tax-free interest on their savings.
In the 2025 Budget, the previous Chancellor Rachel Reeves announced that this would change in April 2027. The proposal was that those aged under 65 would only be able to save up to £12,000 per tax year in a cash ISA, while those aged 65 and over would be able to continue to save up to £20,000 per tax year in a cash ISA.
In the 2026 Budget, the Chancellor John Healey announced a reversal to this proposal, so the annual cash ISA limit remains at £20,000.
Annette Barnes, Leeds Building Society’s Chief Executive Officer, welcomed the reversal, saying:
“I’m pleased the Chancellor has listened to concerns raised across the sector. Cash ISAs are simple, trusted products that give people choice over how they manage their money, so this is very welcome news for our members and for savers more widely.
“We support the ambition to help more people invest, but that shouldn’t come at the expense of cash savings. Saving and investing can go hand in hand, and retaining the current £20,000 annual cash ISA limit allows people to make the financial choices that are right for them.”
To find out more about Leeds Building Society’s range of fixed and variable rate cash ISAs (with easy or limited access accounts available), please visit our cash ISA page.
View our cash ISAsThis article is not advice, and you should seek independent financial or legal advice if needed.
