As the Chancellor prepares for the Autumn Budget later this month, Swansea Building Society has added its voice to those calling for the protection of the current Cash ISA savings limits.
The Society is backing the Building Societies Association (BSA), which represents all 42 UK building societies, in warning that any reduction in the annual Cash ISA subscription limit would be counterproductive — discouraging saving, adding complexity, and potentially harming both the housing market and wider economy.
Under current rules, savers can deposit up to £20,000 a year into their ISA accounts, tax-free. However, there has been speculation that the Chancellor could reduce this limit in the upcoming Budget as part of wider reforms to the ISA system.
The BSA, in its recent representation to the Autumn Budget, argues that such a move would undermine the success of the ISA scheme — which has long played a key role in helping people save securely and responsibly. According to the BSA, building societies and mutual-owned banks hold 47% of all Cash ISA balances in the UK, making them central to the nation’s savings culture.
Alun Williams, Swansea Building Society Chief Executive, said:
“Cash ISAs are one of the simplest and most trusted savings products available to the public. They help millions of people to save securely, tax-free, and independently — supporting financial resilience, homeownership, and long-term stability.
“Any reduction in the ISA limit would not only discourage saving, but could also reduce mortgage availability and economic growth, as the BSA’s analysis makes clear. We strongly support maintaining the current £20,000 limit to ensure that savers continue to have a meaningful and flexible way to put money aside for the future.”
The BSA’s analysis, conducted with input from former Office for Budget Responsibility economists, suggests that cutting the Cash ISA limit from £20,000 to £5,000 could reduce mortgage supply by around 17,000 loans and potentially lower UK GDP by £7 billion over five years, due to the knock-on effects on lending and consumer activity.
Swansea Building Society also supports the BSA’s call for simplification in other parts of the ISA landscape, such as the Lifetime ISA, which currently combines saving for a first home and for retirement within a single product. The Society agrees that focusing the Lifetime ISA solely on helping first-time buyers could make it more effective and easier to understand.
Alun Williams added:
“At a time when many households are trying to rebuild their savings after a period of high inflation, it’s crucial that the Government continues to support savers. Building Societies exist to serve their members and local communities — not external shareholders — and ensuring that people can save with confidence is central to that mission.”
Founded in 1923, Swansea Building Society has grown to become one of the strongest mutuals in the UK, with branches across South and West Wales and a strong commitment to maintaining its traditional, personal approach to savings and mortgage lending.
