Budget Update 2025: Our support for ISA savers

In yesterday’s Budget, Chancellor Rachel Reeves confirmed that while the overall £20,000 ISA allowance remains in place, £8,000 of it will now be reserved specifically for investment ISAs. However, those aged over 65 will continue to benefit from the full £20,000 cash ISA allowance. Following this announcement, we’ve been reflecting on what the changes mean for our members and communities.

As a Building Society founded on mutual support, we welcome the news that, from 2027, over-65s will retain their full allowance and see this as a positive step that offers some stability for those in later life.

For under-65s, the changes bring new questions about how best to plan for the year ahead. We believe there are real opportunities to support people in understanding what this means for their savings and financial wellbeing, and we’re committed to being there every step of the way.

Education will be essential to ensure this initiative succeeds for the Government. It’s important to clearly explain the ease of use, associated fees, and potential risks. Many providers manage investment portfolios for a small annual fee, and while the average growth can be higher, there is always the possibility of losses. This guidance applies equally to both colleagues and customers.

At Monmouthshire Building Society, we’ll continue to offer personalised savings reviews and expand our educational work with community groups to help people navigate the new tax landscape with confidence and all the information that they need.

If you have questions about how the Budget affects you, our doors are always open.