Despite the government now allowing savers to contribute to more than one of each type of ISA annually, uptake has been limited. In November 2023, Jeremy Hunt announced in the Autumn Statement that from April 6, people would be able to make multiple subscriptions to the same type of ISA. However, research from Opinium shows that the majority of independent financial advisers (87%) have not observed any change in their clients’ behavior regarding ISAs.
Opinium’s global head of financial services research, Alexa Nightingale, commented, “The change in ISA rules took effect in April this year, but it seems to have had little impact on savers’ behavior. The intention was to empower savers to seek better returns by making it easier to switch between providers. With interest rates finally beginning to decline, advisers may increasingly encourage clients to maximize their returns, potentially leading to more people paying into multiple ISAs as the year progresses.”
Opinium Research conducted an online survey of 200 IFAs between July 3 and 12 to gather these insights.
During the March 2024 Spring Budget, Hunt also introduced a new UK ISA, offering an additional £5,000 tax-free allowance to boost UK retail investment, in addition to the existing £20,000 ISA allowance.
Previous research by Opinium indicated that nearly half of UK adults (48%) would consider opening a UK ISA, with 18% stating they would “definitely” consider it. Among current ISA holders, 57% would consider opening a UK ISA, increasing to 63% among those with a Stocks and Shares ISA. However, 25% of UK adults said they would not consider opening a UK ISA.
