The latest figures from HM Revenue and Customs (HMRC) from 2014-15 gives an interesting indication of how the ISA reforms have performed. For starters, since increasing the allowance to last year’s £15,000, money has flooded in from those taking advantage of the changes. A record £79bn subscribed to adult ISAs, up over £20bn from the previous year.

Interestingly though, the number of subscriptions fell slightly overall. Some 13 million ISAs were opened, down from 13.5 million the year before. In total there is now £483bn sitting in ISAs, an increase of 3 per cent from the year before. The figures tell us where savers are placing their money too. Roughly 80 per cent is held in cash ISAs with the remaining 20 per cent was invested in stocks and shares ISAs.

Perhaps the most interesting point remains the fact that in a low-rate environment, customers still prefer to keep their money in cash rather than investing in equities. It also highlights that the median ISA holder earns between £10,000 to £20,000 and typically saves just under £2,000.

With this in mind, it is worth knowing from April 2016, the new Personal Savings Allowance (PSA) is being introduced meaning basic rate taxpayers won’t have to pay tax on the first £1,000 of interest they earn on their savings. This is reduced to £500 for higher-rate taxpayers. This has raised questions as to whether the ISA becomes redundant to a large proportion of the population. The ISA remains popular across the UK, but nevertheless, we have to acknowledge that it provides stronger benefits to those on higher incomes who are able to maximise their tax-free allowance.

I think the beauty of the PSA is that it will fundamentally give an almost universal tax break to millions of individuals across the UK. Millions who previously felt investing in an ISA was cumbersome or not worth the effort will benefit via their ordinary savings or current account. I think what I and the government want to have is an environment where putting money away is painless and rewarding. The ISA savings vehicle will continue to be popular because of its flexibility and long-term accrued tax benefits, but nevertheless, the PSA will provide tax relief to millions on lower incomes.

It will be interesting to see what this means for savings market and similar data in years to come. Surely we want to have system where people can ultimately save more, no matter what their income.

Simon Healy is managing director of Savings at Aldermore