The UK population are disappointed at the lacklustre increase in ISA limits, reveals Moneysupermarket.com.

Interest rates are at a record low, and savers are struggling to earn good returns on their money, so many had hoped the Budget might have offered better and more immediate help for savers.

Nearly two-thirds (61 per cent) of those polled by Moneysupermarket.com said the chancellor should have done much more to help, and 22 per cent said the increase in ISA allowance will help to a certain extent – they think it's a small step but more is needed.

Kevin Mountford, head of banking at Moneysupermarket.com, says, ‘The increase in the total ISA limit to £10,200 is a step in the right direction to help the nation's savers. However, this is by no means enough to make a real impact on consumers. And the delay in allowing those aged under 50 to benefit from the increased limits will come as a sore disappointment to many savers. What's more, even the over 50s who benefit from a higher allowance this tax year have to wait until October before they can invest the extra, meaning they'll miss out on six month's tax-free interest.

‘Savers have been hit hard by the recent interest rate cuts, and the government should be doing as much as possible to encourage people to save. This year’s Budget will only scratch the surface of a very deep-rooted problem.’

Further reading:

Darling increases ISA limits
Top earners targeted by Chancellor
Budget boost for Child Trust Funds
Pensioners given helping hand by Chancellor