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But Rachel Reeves was thought to be considering reducing the allowance for tax-free cash savings, in a bid to encourage people to put money into stocks and shares instead and boost the economy.

When the money is saved in a cash Isa, the interest is tax-free, however much you earn.

Early years teachers in England will be offered tax-free payments of £4,500 to work in nurseries in disadvantaged areas as part of government efforts to boost standards.

Reform says income from the measure would be transferred annually tax-free to the bank accounts of the lowest paid 10% of full-time workers.

Pip is usually paid every four weeks and is tax-free.