[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Martin Lewis [@MartinSLewis](/creator/twitter/MartinSLewis) on x 3.2M followers Created: 2025-07-09 12:59:11 UTC The suggestion I've made to the govt instead of cutting cash ISA limit... launch a "starter investment ISA." The thought behind cutting the cash ISA allowance is to encourage, especially younger people, to invest instead via stocks & shares ISAs (which in the long run is likely to be better for them and the economy). I think it's unlikely to work, if people want savings, they want savings. Its also unfair to deny older people, who have to be more risk averse when trying to nudge younger people. As the govt has repeatedly said none of this is about raising revenue, I've suggested an alternative concept... Launch a new "Starter Investment ISA" you can put say up to £1,000 in (whether lump sum or dripped in monthly) and as well as it being tax-free you'll get for example a X% boost on contributions from from State (with the cost split between investment providers and the state) as long the money is kept in investments for a set time (eg 1yr). This is a sweetener to encourage people who've never invested to dip their toe in the water. Part of the issue is lack of education and guidance about risk/reward and investing, so doing this would enable it to be more talked about, and let people to take the plunge with less risk (ie some risk is offset by the 5%). It would be set up so you could use the same account to invest in a standard investment ISA too. So people can seamlessly add more funds to it (no bonus over the first £1,000 though) It could be capped at a set age (prob XX like LISAs) if it needed to be targeted. Don't worry about the numbers or exact rules, its a conceptual suggestion. Thoughts welcome XXXXXXX engagements  **Related Topics** [stocks](/topic/stocks) [investment](/topic/investment) [Post Link](https://x.com/MartinSLewis/status/1942931540788367435)
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Martin Lewis @MartinSLewis on x 3.2M followers
Created: 2025-07-09 12:59:11 UTC
The suggestion I've made to the govt instead of cutting cash ISA limit... launch a "starter investment ISA."
The thought behind cutting the cash ISA allowance is to encourage, especially younger people, to invest instead via stocks & shares ISAs (which in the long run is likely to be better for them and the economy).
I think it's unlikely to work, if people want savings, they want savings. Its also unfair to deny older people, who have to be more risk averse when trying to nudge younger people. As the govt has repeatedly said none of this is about raising revenue, I've suggested an alternative concept...
Launch a new "Starter Investment ISA" you can put say up to £1,000 in (whether lump sum or dripped in monthly) and as well as it being tax-free you'll get for example a X% boost on contributions from from State (with the cost split between investment providers and the state) as long the money is kept in investments for a set time (eg 1yr).
This is a sweetener to encourage people who've never invested to dip their toe in the water. Part of the issue is lack of education and guidance about risk/reward and investing, so doing this would enable it to be more talked about, and let people to take the plunge with less risk (ie some risk is offset by the 5%).
It would be set up so you could use the same account to invest in a standard investment ISA too. So people can seamlessly add more funds to it (no bonus over the first £1,000 though)
It could be capped at a set age (prob XX like LISAs) if it needed to be targeted.
Don't worry about the numbers or exact rules, its a conceptual suggestion. Thoughts welcome
XXXXXXX engagements
Related Topics stocks investment