Michael has welcomed radical changes to savings which have come into force.
From 1 July millions of savers across the country are now able to save three times as much money in their Individual Savings Accounts (ISAs). As part of the New ISA, the cash limit has gone up from £5,760 in 2013-14 to £15,000 in 2014-15.
• The overall New ISA limit is £15,000 – and this full amount can be held in either a cash ISA, a stocks and shares ISA, or any combination of the two.
• The New ISA will give savers complete flexibility over how to save and invest – allowing the transfer of savings previously held in a stocks and shares ISA to a cash ISA without losing the tax-advantage.
• Over 23 million adults have ISAs, and over 5 million people reach their cash limit every year. In the South East, 3,394,000 people have an ISA.
1,078,000 people in the South East have already reached the ISA limit and could benefit immediately from the increased limit.
At the same time, the annual subscription limits for Child Trust Funds (CTFs) and Junior ISAs will be increased to £4,000 to let families save more for their children in a tax-advantaged way.
Commenting Michael said: “These changes are about supporting savers at every stage – whether that’s saving for a home, saving for your family or saving for retirement. The New ISA will help millions of people to put aside money in savings and have more financial security.’