Official Statistics

Commentary for Annual savings statistics: June 2023

Published 22 June 2023

This bulletin provides commentary and analysis on the Individual Savings Accounts (including Lifetime ISA), Child Trust Fund and Help to Save statistics contained in this release.

1. Individual Savings Accounts (ISAs)

1.1 Number of ISAs subscribed to (Chart uses data from Table 9.4)

Chart 1 below shows that around 11.8 million Adult ISA accounts were subscribed to in 2021 to 2022, slightly down from 12.2 million in 2020 to 2021. The number of cash ISAs subscribed to decreased by 920,000 compared to 2020 to 2021. The number subscribing to stocks and shares ISAs increased by around 345,000. The share of accounts subscribed to in cash has fallen to 61% of accounts, compared to 66% in 2020 to 2021.

Chart 1: Number of Adult ISA accounts subscribed to during the financial year

Around 1.2m Junior ISA accounts were subscribed to in 2021 to 2022, the tenth full financial year since the scheme was launched, up from 955,000 in 2020 to 2021.

1.2 Amounts subscribed (Chart uses data from Table 9.4)

Chart 2 shows that around £66.9 billion was subscribed to Adult ISAs in 2021 to 2022, a decrease of £5.3 billion compared to 2020 to 2021. This decrease was driven by the fall in cash ISA subscriptions, which decreased by £5.9 billion. The amounts subscribed to stocks and shares ISAs has increased by £0.3 billion since 2020 to 2021.

Chart 2: Amounts subscribed to Adult ISAs during the financial year

In 2021 to 2022, £1.5 billion was subscribed to Junior ISAs, around 42% of which was in cash. Average subscriptions in 2021 to 2022 were £1,229, a 5% decrease on the 2020 to 2021 figure.

1.3 Market value of ISA funds (Chart uses data from Table 9.6)

Chart 3 shows that at the end of 2021 to 2022 the market value of Adult ISA holdings stood at £741.6 billion. This is an 8% increase compared to the value at the end of 2020 to 2021. This was driven by a 14% increase in the market value of funds held in Stocks and Shares ISAs. Stocks and shares ISA holdings account for 62% of the market value of ISA funds, a increase from 58% in 2020 to 2021. Cash ISAs account for 38% of the market value, a decrease from 42% in 2020 to 2021.

Chart 3: Adult ISA market values

1.4 ISA holders by income (Charts use data from Tables 9.7 and 9.10)

Chart 4 shows details of the 22.2 million Adult ISA holders analysed by income band for the year 2020 to 2021. The median ISA holder (by income) had annual income of between £20,000 and £29,999, with an average ISA market value of £29,387. At higher earnings levels the number of ISA holders declines (due to fewer people in higher income bands), but is accompanied by a large increase in average ISA savings values. For ISA holders with incomes of £150,000 or more, the average market value was £94,303.

The number of ISA accounts in 2021 to 2022 has fallen to 22.2 million, from 27.2 million in 2020 to 2021. Due to the calibration done to equalise the individual and aggregate ISA returns received from providers, the reported number of ISA accounts can fluctuate due to large differences between these two datasets.

Chart 4: Number of ISA holders and average ISA market value by income band in 2020 to 2021

Chart 5 shows that the amount subscribed to an ISA increases with the income of the individual subscriber. 15% of subscribers saved at the maximum in 2020 to 2021, rising to 39% of those with income of £100,000 to £149,999, and to 61% of those with income of £150,000 or more. The highest proportion of savers, around 47%, saved between £1 and £2,499.

The chart suggests that some individuals may have contributed more to their ISAs than their annual earnings allow (such as those subscribing the maximum £20,000 with an income of less than £5,000). This may be possible where individuals have existing taxable savings that they are transferring into ISA accounts.

Alternatively, in households with more than one adult, earnings from one high income individual may enable other adults in the household to open an ISA account, in order to make the most use of the tax free allowance on their savings.

Chart 5: ISA subscriptions by income band and size of subscription in 2020 to 2021

Chart 6 shows the proportion of ISA holders with different levels of ISA savings value across income bands. Amongst ISA savers with income of £150,000 or more, 48% have ISA savings of £50,000 or greater, compared to just 9% of savers on an income below £5,000.

Chart 6: ISA holdings by income band and ISA market value in 2020 to 2021

1.5 ISA holders by age and gender (Charts use data from Tables 9.8 and 9.11)

Chart 7 illustrates the distribution of Adult ISA holdings across different age groups. The lowest number of ISA holders was in the youngest category (under 25), but approximately 78% of this group were active savers in 2020 to 2021.

The greatest number of ISA holders was in the 65 and over group however, a large portion of this group (69%) were not active savers in 2020 to 2021.

Chart 7: Age distribution and average market value of ISA holders in 2020 to 2021

The size of ISA holdings increases with age. Chart 8 shows that the proportion of ISA holders with ISAs valued at £50,000 or more is highest amongst those aged 65 or more, whilst the proportion of ISA holders with ISAs valued at between £1 and £2,499 is highest amongst those under 25. The colours in Chart 8 indicate the market value band each ISA holder is in.

The average ISA market value at the end of 2020 to 2021 was around £6,398 for the under 25 group and £9,313 for the 25 to 34 age group. This is compared to around £58,787 in the 65 and over group.

Chart 8: ISA holdings by age range and ISA market value in 2020 to 2021

The sex split of total number of ISA holders is approximately equal. Chart 9 shows that in 2020 to 2021, females accounted for a marginally higher proportion of the total number of ISAs. Females accounted for 52% of all ISAs and 49% of ISA holdings worth £50,000 or more.

Chart 9: ISA savings by sex in 2020 to 2021

1.6 Geographical location of ISA holders (Charts use data from Table 9.9 and 9.12)

Chart 10 illustrates that amongst English regions, the proportion of adults holding ISAs is greatest in the South West at 46.4% and lowest in London at 38.8%.

Chart 10: Proportion of population with ISAs and average market value by English region in 2020 to 2021

Chart 11 shows that at the end of 2020 to 2021, 42% of adults in England had an ISA. By comparison, in Wales, Scotland and Northern Ireland, 42%, 37% and 32% of adults respectively, had ISAs. ISAs held by individuals in England and Scotland had higher average values than the rest of the United Kingdom.

Chart 11: Proportion of population with ISAs and average market value by UK region in 2020 to 2021

2. Lifetime Individual Savings Accounts (LISAs)

2.1 Withdrawals for a house purchase (Charts use data from LISA Table 1a)

Chart 12 shows 56,100 account holders withdrew from their LISA in order to purchase a first time property in 2022 to 2023, an increase of around 5,800 on the previous tax year.

Chart 12: Number of individuals withdrawing for a house purchase

Chart 13 shows that the average value of withdrawal for a house purchase was £13,877 for tax year 2022 to 2023. The average value of withdrawal for a house purchase has increased by approximately £787 since the 2021 to 2022 tax year.

Chart 13: Value of withdrawals for a house purchase

3. Child Trust Funds

3.1 Market value of Child Trust Funds (Charts use data from CTF Table 1 and 2)

As of 5 April 2022 there were around 5.3 million open Child Trust Fund (CTF) accounts, of which around 428,000 were matured accounts continuing as CTF accounts. Around a further 338,000 accounts matured during the tax year 2021 to 2022 and were claimed or automatically transferred to an ISA. The number of open CTFs is decreasing, mainly due to matured accounts being claimed or transferred to ISAs, and accounts that have not yet matured being transferred to Junior ISAs.

The oldest children on the scheme turned 18 in September 2020. Between then and April 2022, around 956,000 accounts matured in total, of which around 528,000 were claimed or automatically transferred to an ISA as of April 2022.

Chart 14 shows that the average market value of a CTF in April 2022 was £2,031. This is up from £1,912 in April 2021.

The average market value of stakeholder and non-stakeholder accounts as of April 2022 were £1,872 and £2,496, respectively. The average market value of a matured account that was claimed or automatically transferred to an ISA in 2021 to 2022 was £2,497. The average market value of a matured account that was continuing as a CTF as of April 2022 was £2,203. This has changed from April 2021, where continuing matured accounts had a higher average market value than claimed or transferred matured accounts, at £2,721 compared with £2,143.

Chart 14: Average market value of Child Trust Funds in 2020 to 2021

Chart 15 shows that in 2021 to 2022, as subscription amount increases, the number of individuals subscribing decreases. The majority of CTF subscriptions were in the £1 to £249 band, with 487,000 accounts having £1 to £249 subscribed to them in the tax year 2021 to 2022. Around 4.8 million CTFs received no subscription. The average subscription to stakeholder accounts was £455 whilst the average subscription to non-stakeholder accounts was £661. The average subscription across all CTFs was £498.

Chart 15: Child Trust Fund accounts by subscription amount in 2020 to 2021

4. Help to Save

Chart 16 shows the number of Help to Save accounts that were open in each month between April 2020 and March 2023 (the three most recent complete tax years). It also shows the total number of accounts that received a deposit and the total value of deposits paid into accounts in each month over this timeframe.

The total number of open Help to Save accounts was 342,300, as of March 2023. The number of open accounts remained relatively stable over the course of the 2022 to 2023 tax year. This is because, whilst new Help to Save accounts continue to be opened, the accounts created towards the start of the scheme are now reaching the four-year maturation point. Since the start of the scheme, 449,450 Help to Save accounts have been opened in total, as of March 2023.

This version of the release also contains statistics at the level of government office regions. Breakdowns by local authority district and parliamentary constituency level are not included in this release as HMRC has discontinued these breakdowns in response to feedback received in a statistical consultation. Please see the 2022 Annual Savings Statistics for the latest version of these tables.

In total, since the start of the scheme, around 382,850 people have deposited into a Help to Save account. This is an increase of roughly 25% from March 2022. For those individuals making deposits, the average deposit per person per month has remained at £48; the maximum permitted monthly deposit is £50, with 93% of monthly deposits being the maximum. However, there are 43,500 open accounts that have still received no deposit.

Total deposits to the scheme in the 12-month period of April 2021 to March 2022 were around £115 million.

Chart 16: Total number of open Help to Save accounts, number of accounts receiving deposits per month, and total value of monthly deposits between April 2020 and March 2023

Source: HMRC data

4.1 Contact Information

The statistical contacts for this publication are:

• K Ismail

• E Campbell

• P Lawton

• personaltax.statistics@hmrc.gov.uk

For press queries, please contact HMRC Press Office: news.desk@hmrc.gov.uk