Anyone with a Cash ISA is being urged to take action now before rumoured changes to limits are announced by Chancellor Rachel Reeves in November.

Speculation is ramping up that the government is set to cut Cash ISA limits, with reports surfacing in the Financial Times that Labour could halve the current annual Cash ISA deposit limit down from £20,000 to just £10,000.

Now, financial experts are urging savers to act now before any such changes are announced.

Kevin Mountford, personal finance expert and co-founder of Raisin UK, has shared his thoughts on the Chancellor’s plans to halve the tax-free cash ISA allowance and what this means for UK savers.

He told the Express that “savers should take stock of their options now, review existing ISA balances, consider using this year’s full £20,000 allowance while it is available”.

It comes just weeks before Rachel Reeves delivers her Autumn Budget on November 26, which according to insiders in the finance industry, could reduce Cash ISA limits to £10,000 while keeping the overall ISA limit at £20,000 including stocks and shares, in a bid to promote investment over cash savings.

Mr Mountford, co-founder of Raisin UK, said: “Halving the cash ISA allowance would be a major shake-up for savers. For years, ISAs have been one of the few simple, trusted ways to protect savings from tax, and cutting the limit would risk undermining that confidence. At a time when more people than ever are paying tax on their savings interest, restricting access to tax-free cash savings could feel like a step backwards for ordinary households.

“There is no denying that whilst ISAs have been a great success, they have become somewhat confusing and changes are needed.

“However, the proposed cap on the cash element may well backfire. While data shows that returns from stocks and shares are greater than money invested in cash, the former generally needs to form part of a longer-term plan.

“Rightly or wrongly, UK consumers tend to be more risk averse, and any attempts to push them down this route could dissuade people from using ISAs altogether, leading to more money being held in standard savings accounts and therefore incurring tax. It has taken considerable effort to build a stronger savings culture in the UK, and it feels as though the government now sees savers and pensioners as easy pickings.

“The government’s ambition to get Britain investing is understandable, but it is important not to punish those who value the certainty and security of cash. For many, particularly older savers or those building an emergency fund, a cash ISA is not about chasing returns but about peace of mind.

“Any reform needs to balance the push for growth with the need for financial inclusion. Savers should take stock of their options now, review existing ISA balances, consider using this year’s full £20,000 allowance while it is available, and make sure their money is spread across the best-paying accounts. For those thinking longer term, exploring a mix of cash and investment ISAs may offer the best of both worlds.”

In July, Ms Reeves confirmed in a Mansion House speech that “further changes to ISAs” were still being considered in a bid to get “better outcomes for UK savers and the UK economy”.

She said: “I will continue to consider further changes to ISAs, engaging widely over the coming months and recognising that despite the differing views on the right approach we are united in wanting better outcomes for both savers and for the UK economy.”