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A major change has been announced for cash ISAs in a blow to savers.

The £20,000 tax-free ISA allowance is being slashed to £12,000.

The major change impacts how much savers can put away before facing tax.

READ MORE: Rachel Reeves 'tax raid' warning to anyone earning over £40,000

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The aim is encourage more people to invest in stocks and shares rather than putting all their money into savings, providing a boost to the economy.

However, the change will not come into effect until April 2027 so there is still time for savers to take advantage of the existing rate.

Pensioners with cash ISAs won't be affected by the new rules.

Susan Allen, chief executive at Yorkshire Building Society, said: “While we’re

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