Lower Isa limits deter people from saving

The Treasury Select Committee is calling on the Government to reassess its decision to lower Isa lim...

The Treasury Select Committee is calling on the Government to reassess its decision to lower Isa limits, calling it a contradiction in its policy. In its report on the Chancellor's 2003 pre-Budget report, the committee noted the Government's policy has been to encourage people to save. As cash Isas are popular with low income earners, to reduce the Isas from £3,000 to £1,000 per year conflicts with the policy of encouraging people to save, the committee said.