Alice Haine, head of personal finance, Hargreaves Lansdown:
“Britons are saving and investing harder than ever while looking to ensure their money works as tax efficiently as possible, with 16.8 million adult ISA accounts subscribed to in the 2024-25 tax year, and 1.6 million Junior ISAs.
Encouragingly, Stocks and Shares ISAs are rising in popularity, with a significant jump in the number of investment ISAs subscribed to. That suggests that the Government’s mission to get more Britons investing is beginning to gain traction, though savvy investors will also be looking to shield their portfolios from the rising tax burden.
While the proportion of Cash ISA accounts subscribed to has edged lower, the amounts paid into them rose dramatically as savers took advantage of bumper savings rates. It’s likely that those worried about the possibility of future reforms made the most of the current Cash ISA allowance. While the ISA reforms were not announced until the Autumn Budget in November last year, speculation of a Cash ISA cap had already started at the beginning of 2025, so expect those Cash ISA stats to ramp up in the 2025-26 tax year.
HL research shows that 12% of Britons are looking to open and contribute to a Cash ISA before the changes take effect, while 11% plan to prioritise using their full Cash ISA allowance. Those figures rise markedly among younger adults, rising to 24% and 15%, respectively, among 18- to 34-year-olds. By contrast, they fall to 5% and 8% among the over 55s, reflecting the fact that over 65s are unaffected by the Cash ISA cap.
ISAs are set to become even more complex from April next year when the reforms take effect, so it’s worth understanding how the new rules could affect your financial plans and consider taking action if you need to.”
Helen Morrissey, head of retirement analysis, Hargreaves Lansdown:
“Interest in the Lifetime ISA remains strong, with the latest data provisionally showing over 1.1m accounts were subscribed to in 2024-25. They have been a handy way for people to get a first step on the property ladder, and a valuable option for the self-employed. The decision to replace the Lifetime ISA with a product aimed at first time house buyers only will be a bitter blow for those who valued the ability to balance saving for retirement with the opportunity to access their savings when needed albeit subject to a tax charge.
The good news is the government has said that those who already have a Lifetime ISA can keep paying in, so they’ll still get the 25% government bonus on contributions up to £4,000. For anyone thinking about using one in the future, it’s worth considering opening an account sooner rather than later, even if it's funded with a small amount. That locks in access to current eligibility rules and gives savers the flexibility to contribute more when their finances allow.”
Notes to Editors
HL is the UK’s largest investment and savings platform for private investors and more than 2.2 million clients trust us with £205 billion (as of June 2026).
We help Britain build wealth, with confidence. Our promise is simple: to provide the best products, the best support and the best value. Founded in 1981, we’ve been helping people save and invest for a better financial future for more than four decades. We offer a lifelong, secure home for our clients’ investments and savings, combining great value with outstanding service, to make managing your money easier at every stage of life.
Our award-winning Savings & Resilience Barometer measures the nation’s financial resilience across our 5 to Thrive pillars, equipping people with the tools they need to strengthen their financial futures.
Saving and investing is for the whole family, and to support intergenerational wealth transfer, we’ve removed all platform charges and share dealing fees on our Junior ISA, meaning kids go free, and we’ve reduced the platform fee on our Lifetime ISA to 0.25%, supporting those savings for their first home or for retirement.
Regular saving into all funds, FTSE 350 shares, and selected investment trusts and ETFs is free.
Our clients also have access to the most comprehensive pension and retirement solution, including SIPP accounts, SIPP Income Drawdown, UFPLS payments and annuities, as well as over 14,000 investment options across funds, shares, ETFs, investment trusts, bonds and gilts.
HL Active Savings is the UK's largest retail cash savings platform that lets savers easily make more of their money and the HL Cash ISA allows savers to manage their Cash ISA portfolio across multiple banks, all within one account.