[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: 2025-07-11 13:23:59 UTC On the back of (as yet unconfirmed) reports the govt has decided not to announce a cut to the cash ISA limit next week .I thought it worth coming back to the 'Starter Investment ISA' idea I put out the other day (below) The idea is you give a specific boost to first time investors within a normal Investment ISA and this could positively expose people to investing. I made this suggestion to the govt at the same meeting as when I explained why I thought cutting the cash ISA limit wouldn't significantly achieve their stated aim. That aim, which I support, is to encourage younger people to invest, which over the longer term should be beneficial to those individuals and the economy. The govt robustly told me the idea behind cutting the cash ISA limit wasn't to raise revenue. With that in mind, I explained that I thought - Most would still save not invest, just have to pay more tax on it. - It especially penalised older savers who can't take as much risk - Both those points meant it was a hugely unpopular concept (I pointed to the response to polls and messages on my social media feed) - Plus it would effectively favour big city investment firms over building societies. And reducing Building Societies of funds could lead to higher mortgage rates My view has always been if we do want to encourage younger people to invest more (and we should), we need better education, easier guidance regulations, and possibly some extra incentives. For wealthier individuals huge investment incentives eg the very generous Seed EIS scheme. So why not have something simple at the starter level for all - let people dip their toe in the investment water - with a carrot not a stick. Which is where my concept with the Starter Investment ISA (explained in the post below) comes from. It's not primarily about the size of the investment, more its an easy start point, that reduces the risk barrier, provides some confidence that its suitable for first timers and creates a talking point. After all many who start investing, and spend the time to understand it, then stick with it. I hope to have more conversations on it (no idea if I will yet). XXXXXXX engagements  **Related Topics** [investment](/topic/investment) [isa](/topic/isa) [Post Link](https://x.com/MartinSLewis/status/1943662555613774211)
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Martin Lewis @MartinSLewis on x 3.2M followers
Created: 2025-07-11 13:23:59 UTC
On the back of (as yet unconfirmed) reports the govt has decided not to announce a cut to the cash ISA limit next week .I thought it worth coming back to the 'Starter Investment ISA' idea I put out the other day (below)
The idea is you give a specific boost to first time investors within a normal Investment ISA and this could positively expose people to investing.
I made this suggestion to the govt at the same meeting as when I explained why I thought cutting the cash ISA limit wouldn't significantly achieve their stated aim.
That aim, which I support, is to encourage younger people to invest, which over the longer term should be beneficial to those individuals and the economy.
The govt robustly told me the idea behind cutting the cash ISA limit wasn't to raise revenue. With that in mind, I explained that I thought
- Most would still save not invest, just have to pay more tax on it.
- It especially penalised older savers who can't take as much risk
- Both those points meant it was a hugely unpopular concept (I pointed to the response to polls and messages on my social media feed)
- Plus it would effectively favour big city investment firms over building societies. And reducing Building Societies of funds could lead to higher mortgage rates
My view has always been if we do want to encourage younger people to invest more (and we should), we need better education, easier guidance regulations, and possibly some extra incentives.
For wealthier individuals huge investment incentives eg the very generous Seed EIS scheme. So why not have something simple at the starter level for all - let people dip their toe in the investment water - with a carrot not a stick.
Which is where my concept with the Starter Investment ISA (explained in the post below) comes from.
It's not primarily about the size of the investment, more its an easy start point, that reduces the risk barrier, provides some confidence that its suitable for first timers and creates a talking point. After all many who start investing, and spend the time to understand it, then stick with it.
I hope to have more conversations on it (no idea if I will yet).
XXXXXXX engagements
Related Topics investment isa