28 October 2026
If you are covering the news that the government will reverse the cut to the Cash ISA allowance and the creation of a new ISA, please see the following comment from Steven Levin, chief executive of Quilter.
“Abandoning the planned Cash ISA cut is welcome. Encouraging more people to invest is an important ambition, but restricting saving was never the best way to achieve it. The focus should be on making investing more attractive and accessible, not making cash saving harder.
“But stepping back from one unnecessary complication only to introduce a Starter ISA risks replacing it with another. We do not need more types of ISA. For most adults, a Cash ISA and a flexible Stocks and Shares ISA should be capable of meeting their needs, alongside Junior ISAs for under-18s.
“Creating another ISA means another set of rules for customers to understand and another product for providers to build and administer. It could also mean customers having to convert from a Starter ISA into a full Stocks and Shares ISA later. That adds complexity, cost and administration for little obvious benefit.
“Helping people take their first steps into investing is absolutely the right objective, and there may be a case for stronger incentives to do so. But those incentives should work through the existing ISA framework rather than require the creation of another product. Every new ISA label risks diluting the simplicity that is one of the great strengths of the ISA brand.
“The government should use this moment to simplify the ISA landscape, not add to it. Cash has an important role for emergencies and short-term needs, while investing offers greater long-term growth potential for those able to accept the risks. Policy should help people understand that distinction and give them the confidence to invest, supported by better financial education, guidance and advice.
“People use ISAs to plan for their financial future. They need a system that is simple, stable and easy to understand.”
