The vast majority of savers (97%) are against the Government’s plans to reduce the annual cash ISA allowance, according to a new survey by Hampshire Trust Bank (HTB).

The group suggested that the plans were being viewed by savers as “another outrageous attack on the older generation”.

HTB published its findings ahead of the Chancellor’s Mansion House speech next week, in which Rachel Reeves is expected to announce reforms aimed at encouraging investment in stocks & shares ISAs.

However, HTB found that just 9% of cash ISA savers would turn to this option.

The survey, based on responses from 1,250 cash ISA savers, also revealed that 89% described cash-based, tax-free saving as “critical” to their financial future.

Managing director of savings at HTB, Stuart Hulme, suggested there is a “misconception” that cash ISA savers would become investors in the stock market should the ISA allowance change.

“Cash ISA savers are cautious by nature – many are older, reliant on the interest income to top up their pensions – and can’t afford to gamble with their future,” Hulme commented.

“Our customers have spoken with clarity and conviction. These aren’t just numbers – they’re people who’ve planned, saved and now feel betrayed. They feel penalised, and as one saver put it, ‘at the age of 80 years old, I am not going to gamble my life savings in stocks and shares’.

“Only 9% of cash ISA savers said they would switch to a stocks & shares ISA, undermining the logic behind the proposed change. Rather than boosting investment, the policy discourages cash savings. Many savers told us they’d respond better to stocks & shares incentives over cash ISA reductions.

“The Treasury thinks this will gently steer savers towards investing – but our customers see it differently. To them, this isn’t a nudge – it’s a shove into uncertainty.”

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