On 26th March 2025, the Chancellor, Rachel Reeves, gave her first Spring Statement. It’s usually an update on how the economy is performing, with bigger changes expected in the Autumn Budget.
Before the Spring Statement, there was speculation that other changes could be announced that might have an impact on investments and pensions.
In short, the Chancellor hasn’t announced any changes that affect the world of investments and pensions. However, she did highlight a few areas that might change in the future, which we’ve had a closer look at below:
The future of ISAs might be simpler
In the past, Labour has talked about reviewing ISAs and simplifying the different types of ISAs that are available.
The Chancellor confirmed, “The government is looking at options for reforms to Individual Savings Accounts that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission”.
The government has also previously said they want to encourage people in the UK to invest instead of saving in cash. The idea is that when people invest, they could earn better returns over the long term. If people invest in UK companies, it could also help boost our economy.
See Hannah’s article on saving and investing.
In February, a Treasury Committee heard from industry experts at the start of an inquiry into the Lifetime ISA (LISA).
The LISA incentivises people saving for a first home and for retirement.
The government didn’t cover LISAs in the Spring Statement, likely because the review into this product is still ongoing. There could be changes on the way around LISAs, particularly around withdrawal charges and limits.
What about pensions?
There weren’t any updates to the world of pensions in the Spring Statement.
However, the Chancellor did talk about the pension reform that’s currently underway, which showed that this is still high on the government’s agenda.
From April 2025, companies will start connecting to a Pension Dashboard, which means everyone in the UK will be able to see all their pensions in one place.
This should be up and running before the end of 2026 and will help to reunite people with the billions of pounds currently estimated to be in lost pensions.
The Minister for Pensions, Torsten Bell, also announced recently that a new Pensions Bill will be introduced to parliament before July. This follows a government Pensions Investment review, which could introduce new rules around small pensions, and will look at how workplace pensions invest people’s money.
The government is also aiming to have more pension savings invested into UK assets, so we’ll follow any changes in this area closely.
It’s important to understand how your pension or investments work. But it’s also important that you don’t make decisions based on the speculation that often happens before the Spring Statement and Autumn Budgets.
We hope the information in this article is useful, but it isn't financial, personal or tax advice. If you want expert advice, you should speak to an Independent Financial Advisor. Remember, the value of investments can go up and down, so you may get back less money than you put in.