How ISA changes will affect your employees – HR's questions, answered

Are your employees about to gamble their savings? An independent financial adviser answers HR's biggest questions.

In the Autumn Budget 2025, Rachel Reeves announced a new limit for how much savers can put into cash ISAs each year, forcing them to choose alternatives, like stocks and shares ISAs instead.

Naturally, many employees might be worried about what these changes mean for their savings. 

We spoke to James Justice – one of Mintago’s panel of independent financial advisers – to find out what this change means for savers.

In this mini masterclass, he tells HR leaders…

• What the government announced
• What the new limit means for savers
• How employers can help employees navigate this change

1. What changes did the government announce for ISAs?

James breaks down the upcoming changes to ISAs: 

• The Cash ISA limit will be reduced from £20,000 to £12,000

• The total allowance of £20,000 across all types of ISA won't be changed.

• You can still split your allowance between Cash ISAs, Stocks and Shares ISAs and LISAs (Lifetime ISAs).

Here's what he says that will mean in practice:

• The cap only applies to the Cash ISA part of your total allowance.

• If you use the full £12,000 Cash ISA limit, you can still invest the remaining £8,000 in a Stocks and Shares ISA.
  

And the good news for over 65s:

• There won't be any changes if you're over 65 years old.

2. What do the ISA changes mean for savers?

According to James, the key thing for savers is to know what's changing and think about what it means for your savings. 

• Think about what you want your money to do.

• Take this opportunity to make sure your savings are working hard.

If you're saving more than £12,000 a year:

• Stocks and Shares ISAs can fill the Cash ISA gap.

• But bear in mind investments usually need at least 5 years to produce the returns you're after.

You have other options, if you don't fancy investing:

• Premium Bonds – they're government-backed, you can save up to £50,000, and you can access your money any time.

• Regular saver accounts – some banks offer accelerated interest rates, but there's a limit on how much you can put in each month.

And don't forget your savings allowance:

• Normal savings accounts are taxable, but most people have a savings allowance, so you can earn interest without paying any tax.

• Your allowance depends on your tax band...

  • Basic rate taxpayers can save up to £1,000 interest-free

  • Higher rate taxpayers can save up to £500 interest-free

  • Additional rate taxpayers don't get an allowance

3. How can employers help their employees navigate these changes?

The key things James says employers can provide for their employees is information and advice. 

• Share information so employees can make informed choices about their money

• Provide access to specialists – like mortgage and financial advisers

Where Mintago can help:

• Employees get free access to independent financial advisers

• Advisers can up-skill employees and point them in the right direction

• Studies show using a financial adviser can give savers an additional 2% return per year

The bottom line:

• Sure, employees could spend loads of time making sure their money is working hard

• But most people have better things to be doing

• Professional advice can make a real difference to your returns