No saving grace for ISA regulation in Darling's budget

Comment from Alliance and Leicester Savings and Investments following the Budget

Following today's budget announcement, Ewan Edwards, Head of Savings and Investments at Alliance and Leicester comments: "Whilst the changes due in April this year are certainly steps in the right direction, we are disappointed that the Government didn't take this opportunity to further improve the ISA system in today's Budget.

ISAs were introduced in 1999 to encourage people to save for the future and they are the primary vehicle for tax-advantaged adult saving outside pensions.

The structure must, therefore, be straightforward enough for the man on the street to understand.

"Recent research carried out by Alliance and Leicester found that 13% of people either don't know what ISAs are, and so are unsure why they would want one, or don't know what they are but think they sound very complicated.

A further 31% do not have one as they believe a lump sum is needed to invest in one - which is not the case.

"Although the take up of ISAs has been positive over the last nine years and is continuing to grow, it is concerning that there is still wide-spread confusion about the rules and regulations.

Earlier this year, Alliance and Leicester put forward a 'three-point plan' to the Government to make ISA rules more simple and flexible, so that everyone is clear about how ISAs work and how to get the most out of them.".

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