Jenny Keen bought her home in Essex 18 months ago using more than £50,000 in savings stashed away in cash ISAs.

Over the years, she has made the most of the £20,000 yearly allowance that allows savings to accrue interest without being subject to tax.

Keen, 47, is among Britons who face paying more tax on their savings due to the Chancellor’s Budget decision to cut the cash ISA allowance to £12,000 .

From April 2027, £8,000 of the ISA allowance will be designated exclusively for investment, with an exemption for over-65s, who will retain the full £20,000 cash allowance.

The move is intended to encourage savers to move their money into stocks and shares ISAs, but experts have cast doubt on whether it will work.

Michael Summersgill, chief executive of investment platform AJ Bell, sai

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