Robin Fieth, Chief Executive of the Building Societies Association has written to Chancellor of Exchequer Rachel Reeves to outline the importance of cash ISAs and to call on her to keep this important savings tool.

Figures from HMRC show that over 18 million people have a Cash ISA. Almost half (47%) of Cash ISAs are held by people with incomes of less than £20,000 a year, and the average savings balance is just under £13,400¹.

Cash ISAs are an important source of funding for banks, building societies, credit unions and other providers which use the deposits to fund loans to households and businesses. Substantially reducing the role of Cash ISAs would have knock-on impacts on the price and availability of these loans if providers had to replace the funds from other sources. 

Helping people to save, to build their financial resilience and make the most of their money, is key to the organisational purpose of building societies and credit unions. In 2023, building societies paid £3.6 billion in interest on savings in Cash ISAs to encourage this saving.

Robin Fieth, Chief Executive of the Building Societies Association said:

“Cash ISAs help consumers to achieve their savings goals. They play an integral role in the UK savings market and have done for many decades. They represent a policy success upon which we should seek to build, rather than to curb.”

[ENDS]

¹ ISA Statistics, 2021/22 tax year. 18 million Cash or Cash+S&S, other figures Cash ISA only, published September 2024

Press contacts:

Katie Wise, katie.wise@bsa.org.uk Tel: 020 7520 5904
Debbie Enever, debbie.enever@bsa.org.uk Tel: 020 7520 5926
Lauryn Willis, lauryn.willis@bsa.org.uk Tel: 0207 520 5922

Notes to Editors:

1. Download the letter to the Chancellor here
2. The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies have total assets of almost £525 billion and together with their subsidiaries, hold residential mortgages of over £395 billion, 24% of the total outstanding in the UK. They also hold £399 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for 40% of all cash ISA balances. 
3. With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff.  In addition to digital services, they operate through approximately 1,300 branches, holding a 30% share of branches across the UK.