Cash ISA allowance to stay at £20,000 in U-turn – what to do with your money

Savers will keep the right to put up to £20,000 a year into a cash ISA after Chancellor John Healey scrapped his predecessor’s plan to cut the limit to £12,000.

Healey announced the U-turn at the Budget, telling MPs he would “not go ahead with the cut to the tax-free amount that people can put into a cash ISA”.

He also announced that the Government would work with the industry to create a new “starter ISA” to reward first-time investors.

How you could get right to see what your colleagues earn

Business colleagues having a casual meeting, collaborating and discussing ideas while working on a laptop in a modern office lounge

Workers could soon have the legal right to know details of their colleagues’ salaries and bonuses under proposals from the UK equality watchdog.

What you need to know

  • The Equality and Human Rights Commission (EHRC) said employers should be forced to respond to questionnaires from their employees seeking information about pay if they suspect a colleague is being paid more.
  • Employees could request their colleague’s basic salary, working hours, overtime and any bonuses.
  • The EHCR recommended it be a legal requirement for employers to answer their workers’ query within a specified timeframe.

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Why you could expect more questionnaires at work

  • The EHRC’s recommendation came as part of its response to a Government consultation on plans to overhaul equal pay legislation.
  • The Government wants to reintroduce statutory questionnaires to help workers resolve disputes and work out whether they have been paid unfairly, without having to resort to lengthy and costly legal proceedings.
  • Such questionnaires were previously available under the Equality Act 2010, before being abolished in 2014.

Could this lead to fairer pay?

The EHRC argued that specific pay information needed to determine whether pay discrimination has taken place is in the sole control of the employer. Disclosure through a questionnaire procedure could support early resolution of any disputes

A boss and an employee in the middle of an argument - stock photo
Manager scolding employee in modern office. Project manager making mistake. Company director is angry, dissatisfied for worker's poor quality work and missed deadline.

The gender pay gap among full-time employees was 6.8 per cent in April, according to the Office for National Statistics.

A car drives through thick fog on Tornaroy Road outside Belfast. Picture date: Thursday January 2, 2025. PA Photo. Photo credit should read: Liam McBurney/PA Wire

Dense fog to cause chaos this week – tips for safe driving

Calmer weather may be on the way after a weekend of brutal storms, but many Britons will still have to contend with dense and stubborn fog.

What to expect

The Met Office has warned that heavy fog conditions will set in later this week.

  • Some parts of the south and central parts of the UK could wake up on Thursday to some fairly dense fog patches.
  • “They will be quite slow to clear,” the Met Office said.
  • “We’re entering that time of year where fog can be quite stubborn to move once it’s formed.”
  • After three people were killed as a result of storms over the weekend, the Met Office warned that the main risk of any disruption over the next five days would be from “dense fog patches rather than wind and rain”.

The forecast

With calmer weather, winds will be lighter, causing more mist and fog to form, especially overnight and lingering through the mornings. In some places, fog may not clear at all and make it feel quite chilly.

Much needed rain will also be in short supply. October saw an average amount of rainfall after a summer of drought. Yet some reservoirs are still exceptionally low.

Ahead of the weather, the AA has reissued advice to drivers likely to be affected by fog this week.

Fog and rain make driving the Interstate 5 freeway in the San Fernando Valley treacherous, Monday, Oct. 25, 2021. Heavy rain moving down from Northern California is expected to hit the Los Angeles area today. (David Crane/The Orange County Register via AP)

The AA’s advice to drivers in fog

  • Use dipped headlights, wipers and demisters.
  • Use fog lights when you need to, but remember to switch them off once visibility improves.
  • Beware of other drivers not using headlights.
  • Only drive as fast as conditions allow.
  • Slow down so you can stop in the distance you can see clearly.
  • Allow three seconds instead of two between you and the car in front.
  • Check your mirrors before you slow down.
  • Open your window to listen for traffic at junctions if you can’t see.

Tommy Robinson found guilty of harassing two journalists

Tommy Robinson (centre), whose real name is Stephen Yaxley-Lennon arrives at Westminster Magistrates' Court, London, where he is charged with failing to provide the Pin to his phone following an incident in Folkestone on Sunday July 28 2024 when Kent Police officers stopped him under Schedule 7 of the Terrorism Act 2000. Picture date: Tuesday November 4, 2025. PA Photo. Photo credit should read: Jordan Pettitt/PA Wire

Far-right activist Tommy Robinson has been convicted of harassing two journalists and causing them to fear violence.

The 43-year-old, whose real name is Stephen Yaxley-Lennon, was labelled a “bully” by prosecutors after freelance reporter Andrew Young and editor Jacob Dirnhuber felt forced to either leave their homes or employ extra security for fear of a “vigilante” attack.

What you need to know

Jurors at Southwark Crown Court found Robinson guilty of both charges of harassment causing fear of violence.

His trial heard how the anti-migrant activist “retaliated” after the and published a story about him “stoking riots from his sunbed” during unrest in the UK in August 2024 following the murders of three girls in Southport.

5 min read

The back story

  • Robinson made a series of posts
    about the unfolding situation while
    on holiday in Cyprus, prompting the newspaper to send Young and a photographer to the island.
  • After the published its story, Robinson posted criticisms of Young and Dirnhuber on his X account.
File photo dated 25/10/2024 of Tommy Robinson, whose real name is Stephen Yaxley-Lennon, has appeared at the Royal Courts of Justice, London, via videolink from HMP Woodhill in Milton Keynes, Buckinghamshire, for a hearing in bid to bring legal action against Ministry of Justice. Robinson is set to ask for permission to bring a judicial review against the department. Issue date: Thursday March 20, 2025. PA Photo. See PA story COURTS Robinson. Photo credit should read: Jordan Pettitt/PA Wire
LONDON, ENGLAND - OCTOBER 28: Chancellor John Healey poses with the red box as he leaves 11 Downing Street to present the Autumn Budget to Parliament on October 28, 2026 in London, England. This is Chancellor John Healey's the first Budget under Prime Minister Andy Burnham following his entry into office in July. He faces a challenging economic landscape shaped by high government borrowing costs and global market pressures tied to the conflict in the Middle East. (Photo by Alishia Abodunde/Getty Images)

A quick guide to this year’s Budget

This is a Budget for the working people.

Chancellor John Healey today unveiled the long-anticipated Budget, the first for Prime Minister Andy Burnham. Healey called it a Budget “for the working people” as he announced details.

So what are the key takeaways?

Cheaper energy

  • This winter, 20 million households in council tax bands A to D will receive a £100 energy payment paid directly into people’s bank accounts – a £2.6bn scheme.
  • Gas standing charges will be removed from next year, and similar reforms will follow for electricity.
  • The Chancellor says he will remove some levies on energy bills.
  • He also extended a VAT cut on electricity to July 2027, cutting £50 off the annual price cap.

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Savings and pensions

  • The tax-free limit on cash ISAs will stay at £20,000, abandoning plans to reduce it to £12,000.
  • “To make the investment more accessible, I will work with the sector to create a new starter ISA to reward first-time investors,” Healey said.
Coins moving from a stack to a piggy bank

A new pension tax allowance will be introduced. “Pensioners with income up to the value of the full new state pension will not pay income tax in this parliament,” Healey said.

Benefits and paternity leave

  • A benefits rule that punished unpaid carers for earning too much is being abolished. Now, if they earn any amount above the threshold set by means-testing (£204 a week), they lose the whole carer’s allowance.
  • This will be replaced, Healey announced.
  • Self-employed dads and same-sex partners will also be eligible for two weeks’ support worth up to £194 a week.

3.9%

The Chancellor announced a rise in the minimum wage by nearly 3.9 per cent, the same rate for workers aged 18 to 20 years old and those aged 21 and over.

The Chancellor promises to reform non-compete clauses in contracts.

  • Healey also said he will extend the fuel duty cut until July 2027.
  • Workers using their car to get to work can be reimbursed a greater amount by their employers tax-free – the higher mileage rate will increase from 25p to 35p per mile.

The threshold for small business rate relief will increase from £12,000 to £18,000 for retail, hospitality and leisure.

Healey will also raise taxes on the gambling industry to pay for the changes. A £10m alcohol duty relief will be provided for around 2,000 small British brewers and cider makers.

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The two reasons Man Utd have given Carrick shock second chance

Michael Carrick will remain in charge of Manchester United for their weekend trip to Chelsea, despite overseeing the club’s worst start to a top-flight season in 40 years.

Carrick is ‘preparing team to face Chelsea’

The i Paper has been told that despite several alternatives being explored, Carrick was at United’s Carrington base taking training on Tuesday and is “preparing the team to face Chelsea on Saturday”.

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2 min read

A closer look at the detail

Club sources insisted that “⁠⁠Michael and the players will have the opportunity to turn the situation around”, with everyone focused on “showing our response on the pitch”.

TOPSHOT - Manchester United's Portuguese midfielder #08 Bruno Fernandes reacts to their defeat on the pitch after the English FA Cup third round football match between Manchester United and Brighton and Hove Albion at Old Trafford Stadium in Manchester, north west England, on January 11, 2026. Brighton won the game 2-1. (Photo by PETER POWELL / AFP via Getty Images) / RESTRICTED TO EDITORIAL USE. No use with unauthorized audio, video, data, fixture lists, club/league logos or 'live' services. Online in-match use limited to 120 images. An additional 40 images may be used in extra time. No video emulation. Social media in-match use limited to 120 images. An additional 40 images may be used in extra time. No use in betting publications, games or single club/league/player publications. /
Manchester United's head coach Michael Carrick stands near the bench before the Champions League opening phase soccer match between Como and Manchester United in Como, Italy, Wednesday, Oct. 21, 2026. (AP Photo/Antonio Calanni)

Carrick was expected to be relieved of his duties on Monday, with Eddie Howe the frontrunner to take charge. However, after senior executives held a crisis meeting on Monday, Carrick will get a surprise reprieve.

What happened on Monday?

  • With the squad on a day off, Carrick was not expected to be at Carrington, as senior figures were sharpening their axe. Instead, there was no white smoke from the boardroom.
  • Rumours circled that United were waiting for the afternoon and the New York Stock Exchange to open before making an announcement, but club sources insisted no news would be coming out of the club.
LIVERPOOL, ENGLAND - SEPTEMBER 06: Michael Carrick, Manager of Manchester United, looks dejected after the Premier League 2026/27 match between Everton and Manchester United at Hill Dickinson Stadium on September 06, 2026 in Liverpool, England. (Photo by Lewis Storey - Danehouse/Getty Images)

Why has Carrick got another chance?

  • Insiders told The i Paper that chief executive Omar Berrada and director of football Jason Wilcox could not make a call on sacking Carrick yet until they believe a suitable successor is lined up.
  • Dismissing Carrick will cost the club a considerable amount, so they must be certain the next coach is fully interested.
  • One source has claimed that there is a feeling the club needs to stop the cycle of sacking managers.

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FILE - Neil Young poses for a portrait at Lost Planet Editorial in Santa Monica, Calif. on Sept. 9, 2019. (Photo by Rebecca Cabage/Invision/AP, File)

Why Neil Young is suing Trump campaign for the second time

The Canadian-American singer has filed a $10m (£7.5m) lawsuit against a fundraising committee that supports Donald Trump, citing “unauthorised” use of his music.

What does Young claim?

Young, 80, alleges that the Trump 47 Committee infringed on his copyright when it used his hit song Rockin’ in the Free World before Trump took to the stage at a rally in Ohio on 12 October.

The lawsuit claims the use of the song amounts to an “unauthorised public performance”, and that Young “has not, and would not, grant the required licence”.

Gubernatorial candidate Vivek Ramaswamy shakes hands with US President Donald Trump at a campaign rally for Ramaswamy and US Senator Jon Husted (R-OH) in Youngstown, Ohio, US, October 12, 2026. REUTERS/Kevin Lamarque
President Donald Trump speaks at a campaign rally at the Covelli Centre, in Youngstown, Ohio, Monday, Oct. 12, 2026. (AP Photo/Jacquelyn Martin)

A closer look at the lawsuit

The lawsuit said Rockin’ the Free World is “a blistering anthem that contrasts the hollow promises of American political rhetoric with the harsh realities faced by the poor, homeless and forgotten”.

FILE - Neil Young performs at the BottleRock Napa Valley Music Festival in Napa, Calif., on May 25, 2019. (Photo by Amy Harris/Invision/AP, File)
  • Young says that the song is “the opposite of everything that Donald J Trump stands for”.

“We have all been here before,” to quote by Young’s former supergroup Crosby, Stills, Nash and Young.

This is the second time Young has sued Trump over use of the song. The singer filed a lawsuit in 2020, which was later settled.

AUSTIN, TX - MARCH 15: Neil Young attend the "Paradox" Premiere 2018 SXSW Conference and Festivals at Paramount Theatre on March 15, 2018 in Austin, Texas. (Photo by Matt Winkelmeyer/Getty Images for SXSW)
FILE - Legendary rockers Crobsy, Stills, Nash & Young, from left, Stephen Stills, Graham Nash, Neil Young and David Crosby, perform at Reunion Arena, Tuesday, March 7, 2000, in Dallas. Crosby, the brash rock musician who evolved from a baby-faced harmony singer with the Byrds to a mustachioed hippie superstar and an ongoing troubadour in Crosby, Stills, Nash & (sometimes) Young, has died at age 81. His death was reported Thursday, Jan. 19, 2023, by multiple outlets. (Samuel Morales/Star-Telegram via AP, File)

Young’s lawsuit says Trump’s use of the song again breaks the terms of the prior settlement. The new $10m lawsuit also asks for an injunction against further public performance for political purposes.

The Trump administration has not yet responded to the suit.

The Rolling Stones, REM, Rihanna, Adele, and the estate of Prince have all previously criticised the president for using their music at his campaign events.

President Donald Trump waves while departing after speaking during a campaign rally at McMorran Place Sports and Entertainment Center, Sunday, Oct. 25, 2026, in Port Huron, Mich. (AP Photo/Julia Demaree Nikhinson)

5 min read

(FILES) Brazil's senator and presidential candidate for the Liberal Party (PL) Flavio Bolsonaro gestures during a graduation ceremony of new military police officers at the Center of Improvement and Training of Soldiers (CFAP) at Sulacap neighbourhood in Rio de Janeiro, Brazil, on September 25, 2026. Brazil's Supreme Court on October 27, 2026, ordered police to investigate alleged foreign funding of defeated right-wing senator Flavio Bolsonaro's election campaign, and other interference from abroad such as social media "manipulation." (Photo by MAURO PIMENTEL / AFP via Getty Images)

Why Bolsonaro has fled to the US after Brazilian election

Brazilian senator and opposition candidate Flávio Bolsonaro has left the country for the United States after losing Sunday’s presidential election.

The US State Department is expected to grant him and his family entry visas.

What you need to know

Bolsonaro is yet to concede to the current President and leftist candidate Luiz Inácio Lula da Silva.

The losing right-wing candidate left Brazil amid a probe into alleged money laundering, wrongdoing he has denied. He refused to comply with a supreme court order to surrender his passports.

Bolsonaro is the eldest son of former President Jair Bolsonaro, who is currently under house arrest as part of his 27-year sentence for attempting a coup after losing the 2022 election to Lula.

Brazilian presidential candidate Flavio Bolsonaro of the Liberal Party (PL) speaks after losing the presidential runoff election, in Brasilia, Brazil October 25, 2026. REUTERS/Agustin Marcarian

US via Argentina and Ecuador

Argentina’s migration department said on Wednesday that ⁠Bolsonaro and his family had briefly entered the country’s Misiones province on Tuesday night through a road crossing, with valid travel documents

They then boarded a private plane bound for Guayaquil, Ecuador. The current location of Bolsonaro, his wife and two daughters was not immediately clear.

Argentina's President Javier Milei gestures from the balcony of Casa Rosada presidential palace after a Te Deum marking the 216th anniversary of the May Revolution that led to Argentina's independence from Spain, in Buenos Aires on May 25, 2026. (Photo by Luis ROBAYO / AFP via Getty Images)
US President Donald Trump speaks to reporters before boarding Marine One as he departs the White House for Joint Base Andrews, Maryland, en route to Fort Myers, Florida, on the South Lawn of the White House in Washington, DC, US, October 23, 2026. REUTERS/Evan Vucci

Donald Trump and Argentina’s President Javier Milei have been vocal allies of the Bolsonaro family.

Tense relations

  • Bolsonaro’s departure threatens to deepen a rift between Brazil and the US – the two most populous nations in the Americas.
  • Lula has accused Washington of colluding with ⁠the Bolsonaros to put them back in power.
  • Trump told ⁠reporters on Wednesday that he would approve of Bolsonaro coming to ‌the US.
  • The US President on Monday said the Brazilian vote “looked like another rigged election”.

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Like father, like son?

Trump has previously alleged that Jair was a victim of judicial persecution in Brazil.

  • The elder Bolsonaro also went to the US after refusing to concede to Lula in 2022, when then US president Joe Biden was in office.
  • Lula, speaking in Brasilia, said he had just heard that Flavio had left the country, and called it shameful, saying he should have stayed in Brazil and proved his innocence.
  • Bolsonaro had been favored to win Sunday’s presidential election but ended up losing in a shock result.
  • Eduardo Bolsonaro, Flavio’s younger brother who lives in the ​US, said ahead of the vote that an election loss would require ‌a move out of the country.

The election in pictures

Brazilian presidential candidate Flavio Bolsonaro of the Liberal Party (PL) speaks after losing the presidential runoff election, in Brasilia, Brazil October 25, 2026. REUTERS/Agustin Marcarian
Brazil's President and re-election candidate for the Workers' Party (PT) Luiz Inacio Lula da Silva (C) speaks after knowing the first results of the presidential runoff election, in Sao Paulo, Brazil, on October 25, 2026. Lula da Silva pulled off a dramatic comeback on October 25, 2026, as he clinched election victory against right-wing senator Flavio Bolsonaro, who trounced him in the first round. (Photo by Miguel SCHINCARIOL / AFP via Getty Images)
A man walks past a kiosk selling newspapers whose frontpage display the victory of Brazil's President and re-election candidate Luiz Inacio Lula da Silva, a day after the presidential runoff election in Rio de Janeiro, Brazil, on October 26, 2026. According to official results, Lula da Silva was re-elected against all expectations on October 25 with 51.8 percent of the votes to 48.2 percent for right-wing Flavio Bolsonaro, who refused to accept the loss and said he would seek to have the vote annulled. (Photo by MAURO PIMENTEL / AFP via Getty Images)

Everything we know so far about fatal train crash in Spain

At least 64 people have been killed and 80 injured after two trains collided in Spain this morning, it has been reported.

The trains collided between the towns of Los Yebenes and Urda, in the Toledo province in central Spain. Rail operator, Adif, said the entire line from Madrid to the southern Andalusia region has now been suspended.

What do we know so far?

  • The crash involved a high-speed AVE train that had left Madrid bound for Seville and an Iryo train travelling in the opposite direction.
  • The Iryo train was reportedly carrying 147 people, while the AVE train was carrying 397.
  • The crash comes nine months after Spain’s worst rail disaster in more than a decade.
  • In January, two high-speed trains collided near Adamuz in Córdoba, killing more than 40 people.

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[I am] shocked by the serious train accident in Toledo…I remain in constant contact with the Minister of Transport, and with the president of Castilla-La Mancha. My affection, solidarity, and support to all the victims and their families.

Pedro Sánchez
FILE PHOTO: Spanish Prime Minister Pedro Sanchez looks on during a meeting with British Prime Minister Keir Starmer (not pictured) inside 10 Downing Street, in London, Britain, September 3, 2025. REUTERS/Toby Melville/File Photo

The story in pictures

The scene of a collision between two trains in Urda, Spain on Wednesday, Oct. 28, 2026. (Juanma Jimenez/Europa Press via AP)
Spain train crash Screen grab from https://x.com/BNODesk/status/2115369287380816251
Death toll rises to 46 after trains collide near Toledo, Spain - Okdiario https://x.com/BNODesk/status/2115375865987059713 grab taken without permission

What’s happened

Cash individual savings accounts (ISAs) are savings accounts where the interest you earn is free from income tax.

Everyone gets an annual ISA allowance – currently £20,000 – which can also go into a stocks and shares ISA, where your money is invested in shares, funds or bonds. Gains are tax-free, but you could get back less than you put in.

Since 2014, savers have been free to split their allowance between cash and investments however they like.

But last autumn, former chancellor Rachel Reeves announced that from April 2027, under-65s could put only £12,000 into cash. Budget documents described the change as “part of a wider strategy to develop a retail investment culture”.

Healey has now scrapped the cut, meaning savers can keep putting up to £20,000 into a cash ISA.

What does this U-turn mean for your money?

The decision to scrap plans to cut the annual cash ISA allowance from £20,000 to £12,000 will give savers greater flexibility over where they put their money, experts said.

Jason Hollands, managing director of corporate affairs at Evelyn Partners, described the reversal as “a welcome U-turn”, arguing that cutting the allowance was “a very blunt instrument” to encourage more people to invest. He warned that savers could otherwise have faced greater tax on their hard-earned savings.

Andrew Hagger, founder of Money Comms, also welcomed the move, calling it “great news for savers looking to shelter their cash savings out of reach of HMRC”.

“Saving should be incentivised by the Government to encourage people to build a decent nest egg for their retirement,” he added.

When a cash ISA makes sense

Hagger believes current rates make cash particularly attractive, so locking into a cash ISA for a year or two looks like “a wise move”, he said, adding that some accounts pay interest monthly, which could help savers boost their regular income.

If you want to protect your savings, earn tax-free interest and avoid stock market risk, a cash ISA remains a sensible option. It can be particularly useful for emergency savings, a house deposit or money you expect to spend within the next few years.

If you want access to your money whenever you need it, look for an easy-access cash ISA rather than a fixed-rate account, which may lock your money away for a set period or impose restrictions on withdrawals. Compare interest rates and check whether they are variable or fixed before committing.

When to consider investing

But if you are saving for the longer term, a stocks and shares ISA could offer greater growth potential.

Hagger said: “Stocks and shares is less straightforward at the moment – long term, these tend to outperform cash but there’s a lot of uncertainty at present with geopolitical tensions and a potential AI bubble – so things could be quite bumpy in the short term.”

Investing therefore makes more sense for money you can leave untouched for at least five years and can afford to see fall in value. Returns are not guaranteed, and you could get back less than you invest.

Michael Healy, CEO of IG Consumer, takes a different view on the reported U-turn, arguing that protecting cash ISAs risks encouraging people to hold cash instead of investing for long-term wealth.

Can you do both?

Ultimately, you do not have to choose between the two, experts said. 

You can split your annual £20,000 ISA allowance between cash and stocks and shares ISAs. Keep money you need soon in cash, and consider investing for longer-term goals if you are comfortable with the risks.

All of the experts we spoke to warned savers to check the Chancellor’s final announcement before acting on the reported changes.

Original source Cash ISA allowance to stay at £20,000 in U-turn – what to do with your money

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