Chancellor Rachel Reeves delivered the Spring Statement on March 26, 2026, and despite weeks of briefing, the headline ISA allowance held at £20,000 for 2026/27. Savers heading into the April 6 tax-year turnover can fill up as usual.
The big news: British ISA scrapped
The £5,000 top-up "British ISA" — announced by the previous government in March 2024 but never launched — has been officially abandoned. Treasury confirmed the policy was too complex to implement and the revenue cost didn't deliver measurable UK equity inflows in modelling.
Lifetime ISA: property cap rises, but only to £500k
The £450,000 first-home purchase cap has been the single biggest LISA complaint since 2017, with London buyers locked out of the 25% bonus. The Chancellor raised it to £500,000 — welcome, but still below London's £530k average first-time buyer price. The £4,000 annual LISA limit stays.
Cash ISA vs Stocks & Shares
The Chancellor confirmed no split-allowance cap (rumoured at £4,000 for cash). Savers can still put the full £20k into cash if they prefer. With 1-year fixed cash ISAs at 4.35% and the Bank Rate at 4.25%, the real return is only marginally positive — which is why the OBR expects a slow migration to stocks & shares wrappers over the next three years.
Junior ISA
Stays at £9,000. No change.
Pension annual allowance
Held at £60,000. The tapered allowance threshold stays at £260,000 adjusted income.
What to do this week
1. Use the 2025/26 allowance before April 5 — unused allowance disappears. 2. On April 6, fund the 2026/27 allowance in one go if you have the cash — time in the market beats timing. 3. If you're under 40 and saving for a first home under £500k, open a LISA before the tax year ends to bank a full year of the £1,000 bonus.