Chancellor Rachel Reeves has confirmed one of the biggest changes to the UK savings landscape in over a decade.
In the Autumn Budget, she will reduce the annual Cash ISA allowance from £20,000 to £12,000, taking effect from April 2027.

The policy is intended to encourage more long-term saving into UK equities rather than Cash ISAs — though many industry experts argue there is little evidence this will work.

Here’s what the change means, why it’s happening, and the best Cash ISAs available right now for anyone looking to maximise their allowance before the cut.

What’s changing?

• Current Cash ISA allowance: £20,000

• New allowance from April 2027: £12,000

• Stocks & Shares ISA allowance: Expected to remain at £20,000

• “Brit ISA” proposal: Scrapped after industry backlash

The Treasury had originally considered cutting the limit to £10,000 but settled on £12,000 after pushback from providers and investors.

The proposed “Brit ISA” — requiring at least 20% UK equity exposure — has been abandoned due to concerns from the Investment Association and ISA platforms.

Why is the allowance being cut?

According to sources reported by the FT, the Government wants to funnel more household savings into the UK stock market after a weak period for London listings.

However, several commentators — including AJ Bell’s Tom Selby — say reducing Cash ISA capacity won’t necessarily drive more people into stock market investing.

Who will be affected most?

• Savers who use the full £20,000 allowance each year

• Those planning large transfers into an ISA before April 2027

• Anyone who prefers cash savings over investment risk

The change means £8,000 less tax-free room each year for pure cash saving.

What Savers Can Do Before April 2027

You still have plenty of time to maximise the existing £20,000 Cash ISA allowance.

If you’re planning to move substantial amounts into a tax-free savings wrapper, it may be sensible to act before the cut takes effect.

Below are some of the best easy-access Cash ISAs available right now, based on DepositScout’s latest data.

Top Cash ISAs to Consider Before the Allowance Drops (November 2025)

These rates are variable and can change at short notice. Always check live rates on DepositScout.

1. Hargreaves Lansdown – Cash ISA (4.55% AER)

AER: 4.55% variable
Access: Instant
Min balance: £1
Type: Non-Flexible ISA

Why it’s a top pick:

• Market-leading easy-access rate

• Clean, trusted platform

• Very low minimum to open

• Fully FSCS protected via partner banks

Excellent for anyone wanting simplicity and one of the strongest headline rates.

2. Moneybox – Cash ISA (4.47% AER)

AER: 4.47% variable
Access: Instant
Min balance: £500
Type: Non-Flexible ISA

Why consider it:

• Strong rate

• App-first experience

• Automatic savings tools

• FSCS protection through partner banks

Great for savers who like automation and app-based money management.

3. Plum – Cash ISA (4.45% AER)

AER: 4.45% variable
Access: Instant
Min balance: £100
Type: Non-Flexible ISA

Why consider it:

• Good easy-access rate

• Seamless app experience

• Works alongside Plum’s money-management tools

• FSCS protected

Ideal for those who already use Plum for budgeting or automated saving.

4. Tembo – Cash ISA (4.10% AER)

AER: 4.10% variable
Access: Instant
Min balance: £10
Type: Non-Flexible ISA

Why consider it:

• Low £10 entry point

• Simple and beginner-friendly

• FSCS protection

A solid choice for savers starting out or topping up smaller ISA balances.

Final Thought

The reduction of the Cash ISA limit from £20,000 to £12,000 is a significant shift for UK savers. But importantly, the change does not take effect until April 2027.

That gives savers one more full tax year to maximise their current allowance — and potentially secure a strong easy-access rate before the change.

To compare the latest deals, visit DepositScout’s live savings tables, updated daily.