Chancellor Rachel Reeves has confirmed a significant shake-up for Cash ISAs in her Autumn Budget, effectively reducing the amount that can be saved in cash for most adults.
Budget Announcement Amid OBR Chaos
The Chancellor's statement to the Commons on 26 November 2025 was preceded by unexpected chaos after the Office for Budget Responsibility (OBR) mistakenly released its economic forecast early. The OBR has since apologised, calling the premature publication a "technical error" and launching an investigation.
Despite the disrupted start, Ms Reeves proceeded to outline her fiscal plans, addressing widespread speculation about potential changes to savings accounts.
The New Cash ISA Rules Explained
The Chancellor confirmed that the overall annual ISA allowance will remain at £20,000. However, the rules on how this allowance can be used are changing.
From now on, only £12,000 of the total allowance can be saved in a Cash ISA. The remaining £8,000 must be designated for investment purposes, such as a Stocks and Shares ISA.
This move is seen as a government effort to encourage more Britons to invest in the stock market to help stimulate economic growth.
Key Exception for Older Savers
In a crucial detail, the Chancellor announced an important exemption. Savers aged 65 and over will retain the full £20,000 cash allowance for their Cash ISAs and will not be subject to the new £12,000 cash limit.
This reform confirms the fears of many financial experts who had predicted the Chancellor would cut the cash limit, though the method—ring-fencing part of the allowance for investments—was perhaps not what was widely anticipated.
The Autumn Budget has therefore delivered a mixed outcome for savers, protecting the headline ISA figure but introducing a new layer of complexity for those under 65.
