Budget season is stirring up a mix of excitement and anxiety among UK savers, with new figures from Hargreaves Lansdown revealing a record-breaking rush into ISAs and pensions as investors scramble to position themselves ahead of potential tax reforms.
Between 6 April and 31 October, HL clients have paid into SIPPs, ISAs, JISAs and LISAs in greater numbers than in any other tax year on record. The surge spans every product type — including a 91% jump in the number of people contributing to both HL cash and stocks and shares ISAs, and a 22% rise in those maxing out their overall ISA allowance.
The rush reflects a growing belief among savers that the upcoming Budget could reshape tax reliefs, investment allowances, and savings incentives. For many, that uncertainty is prompting a “do it now while you still can” approach.
Sarah Coles, head of personal finance at HL, says the looming Budget has acted as a wake-up call. “People have been reminded just how valuable their ISA and pension allowances are,” she said. “It’s a great sign that people are taking sensible steps to prepare for whatever the Budget holds in store.”
Positioning for Budget 2025 Pension Reform
SIPPs have seen contributions rise 7% on last year’s already strong levels, driven largely by speculation that tax relief could be shifted to a flat 30% rate. Higher and additional-rate taxpayers, who currently enjoy more generous relief, appear especially motivated to lock in the existing system while they still can.
Helen Morrissey, HL’s head of retirement analysis, says clients are taking a “no-regrets” approach. “A flat rate would make pensions more expensive for higher earners. Bringing forward contributions now is a way to get ahead,” she said. Contributions between £3,600 and £10,000 are up nearly 5%, while those below £3,600 have risen by almost 14%, partly driven by parents funding SIPPs for partners and children.
ISA Activity Surges Amid Budget Tax-Rise Fears from 2026
Stocks and shares ISAs are seeing their strongest year since the pandemic boom, up 14% year-on-year. Cash ISA contributors have more than doubled, helped by HL’s new multi-provider cash ISA but also by fears over possible cuts to ISA allowances and speculation of CGT rises.
JISAs and LISAs are both seeing record engagement too, with parents and first-time buyers looking to secure tax-efficient savings before any reforms materialise. JISA contributions are up 38% and LISA contributions up 8%.
With rumours swirling and the Budget only weeks away, UK savers appear to be making one thing clear: whatever’s coming, they’d rather be positioned early than caught out later.
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