Why are Chancellors obsessed with ISAs?

The article argues that repeated proposals to change Individual Savings Accounts (ISAs) reflect their popularity and large role in British savings, rather than a failure of the scheme. With 23 million adults holding ISAs and £952bn invested in them, changes attract competing interests across government and the financial services industry.

ISAs can help people save tax-free for varied goals, but the article says policy should prioritise consumers’ financial wellbeing and avoid simply directing them towards cash or shares. It cites an FCA finding that one in 10 adults have no cash savings and estimates that 15 million people are under-saving for retirement; it also points to constrained household incomes as a barrier. The article supports workplace savings, earlier financial education in England from September 2028, and measuring pupils’ financial literacy, while noting savings-account developments in Sweden and the US.