FundsNetwork head David Dalton-Brown has called on the Government to increase the Isa limit to £10,000 and has attacked its “mismatch” of savings policies.
The Isa limit is being raised slightly in April from £7,000 to £7,200 but Fidelity is lobbying for this to rise to £10,000 or for a Government commitment for future rises in line with inflation. Dalton-Brown says if rises had kept pace with inflation, the allowance would now be £8,900.
Dalton-Brown says: “The Isa changes do not go far enough. There is a mismatch between the Government’s stated aims and their actions. While encouraging people to save for the future, the support and facilities that consumers need to do so are simply not there.”
FundsNetwork also wants the Government to legislate to improve flexibility for transferring money between Isas. Dalton-Brown says that Funds-Network would like to see investors being allowed to move money held in stocks and shares Isas into cash Isas.
He believes that this facility would provide much needed flexibility to investors who are in or approaching retirement.
FundsNetwork this week launched a cash park, allowing investors to use their Isa allowance without committing to any funds immediately and instead staying in cash for a period.