A petition launched calling for the ‘protection’ of Cash ISAs has almost reached its 35,000 signature target, currently standing at more than 34,000. The petition calls on the Chancellor to keep the current Cash ISA limit at £20,000, explaining why it is important for certain savers. The current limit allows Brits to save £20,000 per year and earn tax-free interest on what they have stashed away. However, it has been reported that Reeves is set to slash the limit.

The Chancellor has put a pause on these plans following lobbying from banks, building societies and consumer groups, as well as outcry from some experts and savers. Reeves reportedly wanted to encourage more people to put their money in Stocks and Shares ISAs, which would see them investing and giving a kick to the UK’s economy. But some savers are opposed to the change as it poses more risk for those with savings. A campaign by Positive Money titled ‘Protect Cash ISAs’, published on 38degrees.org.uk, is only hundreds of signatures away from its target.

The petition reads: “Cash ISAs (individual savings accounts) are the most popular kind of savings account in the UK. Tax-free and low-risk, they help 18 million of us to save billions for a rainy day.”

“But the Chancellor is being lobbied by big city firms to cut the allowance so that savers are pushed into moving their money.

“Reducing the Cash ISA limit – while keeping the stocks and shares ISA allowance the same – would unfairly push people into making riskier investments.”

It had been suggested that the new Cash ISA limit could be as little as £5,000, encouraging people to put their savings in Stocks and Shares ISAs. Although these can yield greater returns, this is never guaranteed when investing.

Meanwhile, building societies had argued that money put into Cash ISAs was essential for things like mortgage loans. It is now understood that further consultation on the proposed change will take place before a final decision is made.

A Treasury spokesperson said: “Our ambition is to ensure that people’s hard-earned savings are delivering the best returns and driving more investment into the UK economy.”

There are currently close to £300 billion in Cash ISAs in the UK, making it by far the most popular type of ISA amongst savers in the country.