Stocks & Shares ISA boom is driven by more investors, not bigger contributions

Stocks & Shares ISA boom is driven by more investors, not bigger contributions, expert reveals

Last week, the government released its latest annual savings statistics, revealing how Brits are using ISAs and other savings products.

Stocks & Shares ISAs have seen significant growth, with investors pouring a record £37.2 billion into them in 2024/25. The number of accounts receiving subscriptions also jumped from 4.091 million in 2023/24 to 4.893 million in 2024/25, an increase of almost 20%.

However, despite the surge in participation, the average amount subscribed barely changed, rising from £7,594 in 2023/24 to £7,602 in 2024/25 (an increase of just £8).

Kathleen Brooks, Research Director at XTB UK, explains what could be driving the increase in Stocks & Shares ISA participation and what first-time investors should consider before investing.

“The latest figures suggest that the increase in Stocks & Shares ISA subscriptions has been driven mainly by an increase in the number of accounts receiving subscriptions, rather than a significant increase in the average amount subscribed. While the number of accounts receiving subscriptions increased by almost 20%, the average amount subscribed rose by just £8.”

“In recent years, there has been a significant push to encourage more Brits to consider investing rather than relying solely on cash savings. At the same time, investing has become increasingly accessible. Digital investment platforms have lowered some of the traditional barriers to entry, allowing people to start investing relatively easily and, in many cases, with smaller amounts.”

“Higher living costs could also help explain why we’re seeing more people participate without a corresponding jump in average contributions. People may be increasingly willing to invest but have limited disposable income available to commit. Equally, newer investors may understandably choose to start with smaller amounts while they become more comfortable with investing.”

“The fact that participation has increased so strongly while average contributions have remained almost unchanged is therefore significant. It could indicate that investing is reaching a broader group of people, rather than growth simply coming from existing investors putting more money into the market.”

“For people considering a Stocks & Shares ISA for the first time, the tax benefits can be important. Investments held within an ISA are generally sheltered from UK capital gains tax and income tax, although tax treatment depends on individual circumstances and may change in the future.”

“Investing involves risk, and the value of investments can fall as well as rise, meaning investors may get back less than they invest. People should consider their financial circumstances, goals, time horizon and attitude to risk before investing. Money that may be needed in the short term or for emergencies may not be suitable for investment, as investing is generally considered over a longer-term horizon.”