Record £37bn poured into stocks and shares Isas as savers race ahead of cash Isa squeeze

From the Newshound archive · first published 19 September 2026.

A record 16.8 million adult Isas received contributions in 2024-25, with total subscriptions reaching £135.7 billion — up £32.7 billion year on year — as savers rushed to lock in high interest rates and get ahead of the government's new £12,000 cash Isa cap coming into force in April. Stocks and shares Isa subscriptions rose by nearly 20%, adding £6.1 billion, while cash Isas attracted £95.6 billion, a 37.5% increase. Sarah Coles of AJ Bell observed that the policy aimed at steering savers into investments had 'ironically' triggered a dramatic surge in cash saving instead. Adult Isa holdings were worth £952 billion in total at year end.

The government cut the tax-free cash Isa limit to £12,000 from April, down from the £20,000 overall annual allowance.

Cash Isas remain dominant despite the squeeze, drawing 64% of all Isa money — down only slightly from 66% the previous year.