Martin Lewis: 'The government has finally listened' as Cash ISA limit cut reportedly put on hold

HM Treasury is yet to respond to our requests to confirm the reports, but it's been reported by many newspapers, with the BBC writing: "The Chancellor has shelved any immediate plans to make changes to cash Individual Savings Accounts (ISAs), the BBC understands."

Martin Lewis: 'If true, it shows the government has thankfully listened'

Here's Martin's instant reaction to the reports on X:

The background on the cash ISA limit cut

Reports that the £20,000 cash ISA limit would be cut were circulating earlier this year, with Martin being asked about it in February by a cross-party group of MPs when giving evidence to an enquiry on Lifetime ISAs.

The Treasury had said it was looking at options to reform ISAs, which it hoped would get the balance right between cash and equities. It said it recognised the importance of cash savings, but also wanted to see consumers invest more.

Rumours became stronger this month, with the Chancellor expected to make an announcement on it in her Mansion House speech on Tuesday 15 July. The Treasury had also confirmed plans to publish strategies for fostering growth in the Financial Services Growth and Competitiveness Strategy, which was also due to be published on 15 July.

Reports had suggested the cash ISA limit could be reduced to as low as £4,000, though Martin posted on X that he suspected it was more likely to be down to £10,000 or £15,000. He'd also had confirmation from the government that "retrospective changes would not be considered under any scenario."

Many had expressed concerns over the potential change though. Martin had said "this isn't nudge economics, it's likely just piss people off economics", warning that it would be a "mistake". He'd raised doubts over whether it would actually encourage savers to switch to investing in the stock market over cash, and instead put forward the suggestion of a 'starter investment ISA'.

More than 50 building societies and other financial institutions had also signed an open letter to the Chancellor urging her to "save cash ISAs and keep the £20,000 limit".