The government has announced that tax-free individual savings accounts (Isas) are to be made a ‘permanent feature of the savings landscape’.
Treasury minister Ed Balls said that Isas would continue past 2010 and would retain a maximum investment level of £7,000
Isas were introduced in 1999 and were originally due to last for ten years. More than 16 million people currently hold an Isa and nearly £215 billion has been invested since their launch.
Culture of savings
Ed Balls said: ‘Our task is to entrench a culture of savings for people of all ages. Today’s announcements – the largest ever reform to the Isa regime – will simplify personal savings and help more families to save for their future to deliver our objectives of ensuring everyone can share in rising prosperity.’
‘This open-ended commitment to the Isa will provide stability for savers and certainty for the industry.’
The government has also said that child trust funds will now be allowed to roll-over into Isas on maturity, and the distinction between mini and maxi Isas will also be removed in a bid to make the products simpler and more flexible for consumers.