A finance expert has warned people are “losing money” if they continue to invest in Cash ISAs. Members of the public are instead being encouraged to switch to Investment ISAs amid climbing inflation rates.

Samuel Mather-Holgate, independent financial adviser at Mather and Murray Financial, said: “If you’ve got bags of cash in ISAs, you’re losing money. Inflation has been at record levels and your cash will not have kept up with this, so the buying power of that money has reduced. Shift some of the cash into an investment ISA and over the long term you should see better growth, and higher-than-inflation returns.”

He added: “Rachel Reeves is looking at how to get more people to do that, so you’ll be giving her a helping hand too!”

The Chancellor, who has had a turbulent 2025, has previously said she wants more Brits to invest in stocks and shares ISAs.

Official figures show UK inflation rose to a near 18-month high in June as food prices surged for the third month running.

The Office for National Statistics (ONS) said Consumer Prices Index inflation rose to 3.6% in June, up from 3.4% in May and the highest since January 2024.

The increase was unexpected, with most economists forecasting inflation to remain unchanged at 3.4%.

Last month, the Treasury unveiled a package of measures which included getting more people to move cash out savings and into stocks and shorts.

Among the financial reforms announced was that long-term assets funds will be allowed to be held in stocks and shares ISAs next year.

The Treasury said by enabling this, individuals’ money could be put into businesses and infrastructure.

It added the Government will continue to consider reforms to ISAs and savings to strike the right balance between cash savings and investment.

The Tories warned the Treasury “undermining its own ambitions to promote homeownership” without more clarity on the future of cash ISAs.