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ISA savers 'punished' by sixth year of freeze
Evening Standard
|November 24, 2023
THE Chancellor was today accused of punishing ISA savers by freezing allowances on the popular tax-free accounts for the sixth year running.
While Jeremy Hunt pledged to maintain the triple lock on state pensions and talked of giving employees a pension "pot for life", ISA allowances were held at £20,000.
That news was buried on page 88 of the Autumn Statement on Wednesday.
Increasing the allowance in line with inflation would see it at about £25,000 a year now. ISAs are often used by those saving for a home deposit.
According to the Government's own figures, the cost of ISA tax relief in 2018-2019 was £3.3 billion.
Evening Standard analysis suggests that would be £1 billion more now if they had upped the allowance allowing for market growth.
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