![\"State](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/0_state-pensioner5.jpg\")
<\/p>\nDWP state pensioners are not affected by the HMRC change<\/p>\n
State pensioners born before 1962 exempt from new savings rule<\/p>\n
State pensioners are exempt from incoming cash ISA rule changes. The amount of money that can be saved tax-free in cash Individual Savings Accounts (Isas) will be cut from \u00a320,000 to \u00a312,000 a year for under 65s, Labour Party<\/a> Chancellor Rachel Reeves announced in the Budget.<\/p>\n The current \u00a320,000 annual allowance can be used in one account or spread across multiple Isa products as you wish.<\/p>\n These accounts do not close automatically at the end of the tax year. When the next tax year begins, you can open a new Isa or – in some cases – can keep adding money to your existing accounts.<\/p>\n READ MORE National speed limit could be cut on busy road after string of fatal crashes<\/a><\/p>\n You have to be 18 to open an Isa. You also have to live in the UK or be a member of the armed forces, or a so-called Crown servant who works abroad.<\/p>\n In the Budget, the chancellor said the annual tax-free allowance for cash Isas will be reduced from \u00a320,000 to \u00a312,000 for people under the age of 65.<\/p>\n The change will be introduced in April 2027. It means anyone born before 1962 is exempt. The government wants to “ensure people’s hard-earned savings are delivering the best returns and driving more investment into the UK economy”.<\/p>\n BBC<\/a> and ITV<\/a> star Martin Lewis said: “There’s logic in here based on the policy aims. While I would’ve preferred a carrot, not stick approach \u2013 this isn’t as bad as it could’ve been, \u00a312,000 per year is still a reasonable whack for many people.<\/p>\n “The stated aim was not to raise revenue, but to encourage young people to invest rather than save \u2013 both for the economy, but also because on average it outperforms.<\/p>\n “When I met the Chancellor on this a few weeks ago, I pointed out that a blanket cut to the limit would be perverse; to cut cash ISA limits for older people to encourage younger people to invest wouldn’t work.<\/p>\n “So, the carve out for over-64s makes total sense and I’m pleased she listened.<\/p>\n “What needs to happen along with this is better investment education, easier access to guidance, and better investment incentives for young people.”<\/p>\n","protected":false},"excerpt":{"rendered":"DWP state pensioners are not affected by the HMRC change State pensioners born before 1962 exempt from new…\n","protected":false},"author":2,"featured_media":467460,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,4174,4175,56,54,55],"class_list":["post-467459","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-dwp","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/467459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=467459"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/467459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/467460"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=467459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=467459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=467459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}