ISA reform could turn more savers into investors

7 Apr 2025

Millions of people across the UK use ISAs to grow their savings without incurring a tax burden.

But with inflation outpacing interest rates, the real return on cash savings is often disappointing over the long term.

That is why potential ISA reforms could be a positive step outlined by the Government in their Spring Statement.

The Chancellor, Rachel Reeves, is looking at ways to encourage more people to explore investing as an alternative to cash savings.

While nothing has been confirmed yet, future reforms might simplify the ISA system and make it easier to move from saving to investing.

Currently, there are six types of ISA, including the Cash ISA and the Stocks and Shares ISA.

A proposed streamlined system – perhaps merging Cash and Stocks and Shares ISAs into one main product – would cut down on complexity and make it easier to take that first step into investing.

Those who are currently sitting on a large pot of cash savings – and who do not need immediate access to it – could be missing out on the growth potential that comes with investing.

Of course, investing is not risk-free – the value of your investments can go down as well as up – but for longer-term goals, it could offer better rewards.

The key is getting the right support and advice, and our hope is that ISA reform might pave the way for more accessible guidance, helping you as an investor make confident, informed decisions.

However, rather than waiting for this to happen, it might be valuable to seek the advice of a financial adviser who can help you get ahead of the curve.

If you are wondering whether investing could be right for you, speak to a financial adviser.