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The decision by the chancellor to cut the Cash ISA allowance for under-65s to £12,000 appears to have been driven, at least in part, by an aspiration to get the UK investing on a much larger scale.
AJ Bell is on record that the ISA needs to be simplified, rather than made more complex as will be the case as a result of this change. Elsewhere in the Budget the incentive to invest was actively undermined by increased dividend taxes with a decision to remove stamp duty on newly listed UK shares a welcome crumb of comfort but really no more than that.
According to Aberdeen’s Tell Sid report, released in 2025, only 8% of people’s personal wealth in the UK is in equities and funds. Compared with 33% in the US, 22% in Canada, 19% in Italy and 13% in France.
What’s actually required for people to become enthusiastic about putting their money to work in the markets is, to paraphrase Tony Blair, education, education, education.
Just like mastering a musical instrument or learning a language, getting to grips with finance and the markets when you’re still at school and your brain is more open and flexible, making it easier to grasp new concepts, is the best hope of bolstering the proportion of Britons who are happy to invest.
Never mind investing, managing finances at all was never covered as part of my own education and there’s been very little sign of that changing for my kids either, with my eldest just starting secondary school.
This leaves people entirely reliant on friends or family who have the right experience to pass on their knowledge. Which means, by definition, not everyone is being given an equal opportunity to take control of their financial destiny and tap into the wealth-generating potential of the financial markets.
With the best will in the world, actively investing in stocks and shares or even funds won’t suit every individual. However, the majority of us are going to have at least some exposure to the markets as we look to build up a pot to cover our needs in retirement.
Another key point is that, without understanding the markets, people are much more likely to be burnt by being caught up in scams or unsuitable investments.
A review of the national curriculum announced in November 2025 has trailed the idea of giving greater prominence to financial education. This is quietly encouraging and it will be interesting to see the full details. Although we will have to wait until spring 2026 for this.
In the meantime, AJ Bell will continue to do what it can to provide insights into investing which, in turn, can help people become more confident about making the decisions required to make the most of their hard-earned cash.
Tom Sieber: Content Editor
Tom Sieber is AJ Bell's Content Editor. He was previously the Editor of Shares Magazine. He has been with the business since 2012.
Tom is a regular contributor to the AJ Bell Money & Markets...
