Policefriendly Blog

Lifetime ISA changes: your questions answered - Police Friendly & Metfriendly

Darren Coleshill — Tue, 28 Jul 2026 13:39:15 GMT

The Government has released a consultation to replace the Lifetime ISA (LISA) with a new First Time Buyers ISA.

Some of the headlines may sound confusing, particularly if you already have a LISA, but the key message is simple:

The Lifetime ISA is still available, and existing LISA holders can keep saving under the current rules.

If you already have a LISA, there is nothing to worry about. You can continue to hold it and make contributions under the existing rules.

If you’re aged 18 to 39 and do not yet have one, there is still time to open a LISA while it remains available – and there are good reasons for doing so.

Even if you’ve already bought your first home, still think about opening one as a way to boost your retirement savings.

What is a Lifetime ISA?

A Lifetime ISA, often called a LISA, is a tax-efficient account that helps people save for either:

their first home
later life, with a tax-free payout from age 60

You must be aged 18 to 39 to open a LISA.

You can pay in up to £4,000 each tax year, and the Government adds a 25% tax-free bonus on eligible payments.

That means if you pay in £4,000, the Government adds £1,000 – tax-free. A fully funded LISA could receive up to £32,000 in tax-free Government bonuses over time, based on the current rules.

That is before any growth on your savings, which is also tax-free.

You can continue paying in and receiving the Government bonus until your 50th birthday.

What’s changing?

The Government has announced a consultation on a new First-Time Buyer ISA.

This new ISA could replace the Lifetime ISA once it becomes available.

Unlike the current LISA, the proposed First-Time Buyer ISA would focus only on helping people buy their first home.

This means it is not expected to include the later-life saving option that currently exists within the LISA.

Will I be able to open my Lifetime ISA after the First-Time Buyer ISA is launched.

No, but if you already hold a LISA, you can continue paying into it indefinitely, even after the First-Time Buyer ISA is launched.

Will the £450,000 property price limit change?

Possibly.

Under the current LISA rules, the property you buy must cost £450,000 or less if you want to use your LISA without paying a withdrawal charge.

This has been a concern for some first-time buyers, especially in areas where house prices are higher.

The Government has recognised this issue and is looking at the right property price cap for the new First-Time Buyer ISA.

No final decision has been made.

Will there still be a withdrawal penalty?

No, the proposed First-Time Buyer ISA is expected to work differently from the LISA.

With a Lifetime ISA (LISA), a 25% withdrawal charge applies if you take money out for any reason other than purchasing your first home or after reaching age 60. For example, if you contribute £800, the government will add a £200 bonus, giving you a total balance of £1,000. If you then make an unauthorised withdrawal, a 25% charge (£250) will be deducted from the full balance, leaving you with £750. As a result, you could receive back less than the amount you originally contributed.

With the proposed First-Time Buyer ISA, the Government bonus will be paid when you buy a qualifying first home.

Because the bonus would not be added upfront, there would be no need to take it back if you withdraw your own money for another reason.

The detailed rules are still being developed.

What are the main differences at a glance?

	Lifetime ISA	Proposed First-Time Buyer ISA
Status	Available now	Proposed for the future
Main use	First home or later life	First home only
Age to open	18 to 39	Expected to be 18 and over
Annual allowance	£4,000	To be confirmed
Government bonus	25% added to eligible payments	Expected to be paid when buying a first home
Current maximum annual bonus	£1,000	To be confirmed
Property price cap	£450,000	To be confirmed
Withdrawal charge	25% if not used for a first home or from age 60	Not expected, because bonus is paid later
Later-life saving option	Yes, from age 60	Not expected

Can I still open a Lifetime ISA?

Yes.

If you are aged 18 to 39, you can still open a Lifetime ISA under the current rules.

The Government has said that it will remain possible to open a LISA until the proposed First-Time Buyer ISA becomes available, and LISA holders will be able to save into their LISA in line with the existing rules indefinitely,

That means there is still time to act if you are eligible.

What happens if I already have a Lifetime ISA?

Under the current proposals, you will be able to keep saving into it under the existing rules.

That means you will continue to receive the 25% Government bonus on eligible payments.

Should I keep paying into my LISA?

If you can afford to, yes.

The Lifetime ISA remains an attractive product because of the 25% tax-free Government bonus.

Keeping up your payments could help you:

build a bigger first-home deposit
receive the maximum Government bonus
benefit from long-term growth potential
save towards a tax-free payout from age 60

You do not need to do it all at once. Regular payments can help you build your LISA over time.

Can other people pay into my LISA?

Yes.

Parents, grandparents or other family members can pay into your LISA.

The LISA must be opened by the account holder, and the total paid in must stay within the annual LISA allowance.

But once the account is open, family contributions benefit from the 25% Government bonus in just the same way as the account holder’s contributions do.

What if I have already used my LISA to buy my first home?

You can keep paying into your LISA and use it as a longer-term savings pot for later life.

You will continue to receive the 25% Government bonus on eligible payments until your 50th birthday.

You can then access the money tax-free from age 60.

How has the LISA helped Metfriendly and Police Friendly members?

Nearly 1,500 of our members have used their Lifetime ISA to buy their first home.

On average, they received an extra home deposit boost of around £3,000 from the Government.

For many of our members, that bonus coupled with investment growth in the form of annual and final bonuses has made a real difference.

What is the proposed First-Time Buyer ISA?

The proposed First-Time Buyer ISA will be a new ISA designed to help people buy their first home.

It is expected to be available to adults aged 18 and over without the upper age limit that applies to LISAs.

Unlike the LISA, it is expected to focus only on saving for a first-home.

The Government bonus is also expected to work differently. Instead of being added each year, it will be paid when a qualifying property purchase takes place.

The final rules have not yet been confirmed.

Will I be able to transfer my LISA into the new First-Time Buyer ISA?

This is not expected to be allowed.

The reason is that your LISA already includes the Government bonus.

Under the current proposals, existing LISA holders would continue to use their LISA under the existing rules.

What should I do now?

If you already have a LISA with us, consider keeping up your payments if you can afford to.

If you have already used your LISA to buy your first home, you may still be able to keep paying into it for withdrawal at age 60.

If you are aged 18 to 39 and do not yet have a LISA, now may be a good time to look at opening one while it is still available.

And if you are a parent or grandparent, you may want to talk to your child or grandchild about whether a LISA could help them save for their first home or later life.

If you have any more questions, you can:

Call us – 01689 891454 (Lines are open Mon-Thurs 8:30 – 17:00 or Fri 8:30 – 16:30).

Book a free personal chat – A conversation with a member of our friendly team.

Arrange a call back – Pick a time that suits you.

Important information

This article is based on current Government proposals and announcements. The final rules may change before they come into effect.

Tax treatment depends on your personal circumstances and may change in the future.

This article is for general information only and is not personal financial advice.

Police Officer Pay to Rise by 3.5% in September 2026 - Police Friendly & Metfriendly

Maddy Elcap — Tue, 28 Jul 2026 12:10:05 GMT

Money Beat - ISA changes - Police Friendly & Metfriendly

Darren Coleshill — Fri, 10 Jul 2026 15:00:17 GMT

Will I pay 22% tax on my ISA?

You may have seen recent headlines about a new tax charge on some ISAs.

Some of these headlines sound worrying. But the key point is simple:

The new charge is aimed at cash held inside Stocks & Shares ISAs. You will NOT pay 22% tax on your Police Friendly & Metfriendly ISA.

Here are the main questions answered.

What is changing?

From 6 April 2027, new ISA rules are expected to come into force.

The main change is that the Cash ISA limit will reduce to £12,000 per tax year for people under age 65.

The overall ISA allowance will stay at £20,000.

This means people under 65 will still be able to use their full £20,000 ISA allowance, but only £12,000 of it can go into a Cash ISA.

The rest would need to go into another type of ISA, such as a Stocks & Shares ISA, Lifetime ISA or Innovative Finance ISA.

What about people aged 65 and over?

People aged 65 and over will keep the full £20,000 Cash ISA allowance.

This higher limit will apply from the start of the tax year in which you turn 65.

Why is a new tax charge being introduced?

The Government wants to stop people getting around the lower Cash ISA limit by leaving money sitting in uninvested cash or cash like assets within Stocks & Shares or Innovative ISAs.

What is the new 22% charge?

The new charge applies to interest earned on cash held inside Stocks & Shares or Innovative ISAs.

For example, this could apply where cash is left uninvested inside a Stocks & Shares ISA.

The charge is 22% of the interest paid on that cash.

The tax is paid by the ISA provider directly to HMRC on behalf of the investor. Individuals will not need to report it to HMRC themselves.

Does this mean ISAs are no longer tax-free?

No. ISAs remain tax-efficient savings and investment products.

The charge is targeted at cash interest inside non-Cash ISAs – it does not mean all ISA returns will be taxed.

Will I pay 22% tax on my Police Friendly & Metfriendly ISA?

No, not in the way some headlines may suggest.

Your Police Friendly & Metfriendly ISA is invested in our With-Profits Fund.

We do not hold uninvested cash balances for members, and only a small part of the fund is held in cash or cash-like assets.

The new charge is aimed at long-term cash holdings inside non-Cash ISAs. That is not how our ISA works.

What about cash held inside the With-Profits Fund?

Holding some cash inside a wider investment fund is different from leaving your ISA money sitting in uninvested cash.

Our With-Profits Fund spreads money across different types of assets. These may include fixed interest investments, shares, property and cash.

Cash is held only as part of the fund’s wider investment approach.

The Government has said that diversified portfolios with some cash-like exposure will still be allowed.

What are “cash-like assets”?

The Government has said that, from April 2027, cash-like assets will be defined as Money Market Funds.

A Money Market Fund is a low-risk fund that invests in short-term debt securities.

The new rules are mainly aimed at people using these funds, or uninvested cash, as a way to keep large amounts of money in cash inside a non-Cash ISA.

Can a Stocks & Shares ISA still hold some cash?

Yes.

Investors will still be able to hold cash inside Stocks & Shares or Innovative ISAs.

But interest earned on that cash will be subject to the new charge.

The Government has also said that cash-like assets can still be part of a diversified investment portfolio. The issue is when an Investment ISA is used wholly, or almost wholly, as a cash product.

What happens if a non-Cash ISA is 100% invested in Money Market Funds?

From April 2027, a non-Cash ISA made up entirely of Money Market Funds will be liable for the 22% tax charge on the gains made.

This is because the Government sees this a way to fully invest in cash through an Investment ISA.

Can I transfer from a Stocks & Shares ISA into a Cash ISA?

For people under 65, transfers from non-Cash ISAs into Cash ISAs will not be allowed from April 2027.

Transfers from Cash ISAs into non-Cash ISAs will still be allowed.

People aged 65 and over are expected to retain more flexibility.

Does Police Friendly & Metfriendly offer a Cash ISA?

No.

Our ISA is designed for people who want the long-term growth potential of investing, while still taking a balanced approach to risk.

When you save or invest in an ISA with Police Friendly & Metfriendly, your money is invested through our With-Profits Fund.

This means your money is spread across different types of assets, with the aim of helping to manage risk and deliver attractive returns over the medium to long term.

Is a Police Friendly & Metfriendly ISA the same as typical Stocks & Shares ISA?

No.

With a Police Friendly & Metfriendly ISA, you are not directly choosing shares or funds yourself.

Instead, your money is invested through our With-Profits Fund, which is managed by professional fund managers.

The fund invests across a range of assets, rather than relying on one single investment type.

Is my money protected?

Yes.

Because members’ savings and investments are held in life insurance policies, they are 100% protected under the Financial Services Compensation Scheme insurance rules.

This is different from the protection limit that applies to banks and building societies.

What should I do now?

If you already have a Police Friendly & Metfriendly ISA, you do not need to worry that the 22% charge will apply to you.

If you are thinking about opening an ISA, the recent headlines should not put you off.

ISAs remain a valuable way to save and invest tax-efficiently.

The key is choosing the right ISA for your goals, your time frame, and the level of risk you are comfortable taking.

Find out more

If you have any more questions, you can:

Call us – 01689 891454 (Lines are open Mon-Thurs 8:30 – 17:00 or Fri 8:30 – 16:30).

Book a free personal chat – A conversation with a member of our friendly team.

Arrange a call back – Pick a time that suits you.

Important information

This article is based on current Government proposals and announcements. The final rules may change before they come into effect.

Tax treatment depends on your personal circumstances and may change in the future.

This article is for general information only and is not personal financial advice.

Making Sense of Market Volatility: What’s Happening and How to Navigate It - Police Friendly & Metfriendly

Darren Coleshill — Fri, 22 May 2026 10:10:37 GMT

Market volatility is in all the headlines, and for many savers and investors, it is unsettling.

For professional investors and household savers alike, sharp movements in stock markets make it hard to know what investments might do next

But while volatility can be uncomfortable, it is also a normal part of long-term investing.

What we’re seeing right now

In recent weeks, we have seen markets react sharply and quickly to events in the Middle East, rumours about the formalisation or collapse of the ceasefire and in the anticipation of a leadership contest in Westminster.

Figures about the economy and comments by central banks are also driving markets. Much of this is linked to concerns about the energy supply. Because energy markets are global, even the threat of disruption can quickly affect assumptions about future inflation, interest rates, economic growth and stock market performance.

Sometimes, it is easy to forget some markets have reached or remain near record highs in many parts of the world.

What’s driving the volatility

Several factors are at play:

Global events: Ongoing tensions in the Middle East, in Ukraine and between major world powers continue to impact markets.
Interest rate uncertainty: Central banks, like the Bank of England, are balancing the use of interest rates to control inflation with the effect of slowing economic growth.
Inflation pressures: Inflation pressures, including fuel and energy prices, influence how much people buy, the costs of running a business, and the value of investments.
Economic outlook: Mixed information around economic growth, employment, and consumer spending makes it harder for markets to settle into a clear direction.

Together, these forces create a situation where prices can move quickly as new information emerges. Some investors sit in the middle of it all, aiming to “sell high and buy low”. Some win, some lose, but that’s not how most people invest. With so much going on in the world, it feels like everything is moving at once, which can be unsettling for people wanting simple, steady returns.

When markets are like this, the way your money is invested becomes just as important as where it is invested.

Keeping a long-term perspective

One thing to always keep in mind is that a fall in the market does not necessarily mean you have lost money. You only lose money if you sell your shares for less than the price you paid for them.

Markets have always moved in cycles, and periods of uncertainty have often been quickly followed by periods of strong recovery and growth. The key is having an approach that helps you stay focused on what you are saving and investing for.

How the Police Friendly & Metfriendly approach helps

Our approach at Police Friendly and Metfriendly is designed to keep things stable over five years or more, helping to smooth out the ups and downs that come with most types of investment over this time.

The value of your money in our fund doesn’t directly follow daily stock market movements. Instead, the growth is spread out over time. When markets perform well, some of the gains are held back to help support performance in more difficult periods. This process, known as “smoothing”, reduces the impact of short-term market swings.

We also spread your money across different types of investments, such as bonds, property, and cash. Only around a third of it is invested in equities. This helps reduce reliance on any single market and reduces risk.

"We’re cautiously positioned to take advantage of market growth, while still protecting the fund in a more uncertain world".

Schroders, fund managers for Police Friendly & Metfriendly

So, for our members, this means:

Less anxiety about day-to-day headlines and market movements
Steadier growth of their money over time
More peace of mind during periods of uncertainty

For those who may feel uneasy about investing in the stock market, an investment with Police Friendly & Metfriendly offers access to the potential benefits of investing while helping to control the risk along the way.

Special Offers

Open a regular savings ISA

Receive a £25 Amazon.co.uk Gift Card* when you open a regular savings ISA by 31st August 2026.

Choose from our
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Lifetime ISA
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Junior ISA.

Lump Sum Instant Bonus Offer

If you invest or transfer £10,000 into our ISA or
With-Profit Bond
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If the total household investment is £30,000 or more the bonus amount doubles to 2%.

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Find out more about our offers here

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Terms and conditions apply.

*Terms and Conditions apply to the offers. Please see the website for details:
mpfs.org.uk/promotions-special-offers.
Amazon.co.uk Gift Card restrictions apply – visit
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Police Family Finance Index Report - Spring 2026 - Police Friendly & Metfriendly

Darren Coleshill — Thu, 30 Apr 2026 09:19:43 GMT

The Police Family Finance Index (PFFI) builds an independent picture of the financial pressures facing Police Officers and Staff across the UK. The findings inform discussions on Police pay and help target workforce support.

Take part in this year’s survey for a chance to win one of ten £100 Amazon.co.uk Gift Cards. T&Cs apply.

Nearly half of police officers consider quitting pension amid unprecedented financial pressures

Almost half of police officers in the UK have considered stopping contributions to their pension due to mounting financial pressures, according to a major new national report – with 7% going on to cease payments altogether.

The latest Police Family Finance Index Report (Spring 2026), published by Police Friendly, has highlighted ongoing concerns around long-term financial security across the police workforce.

One of the most shocking results reveals that 46% of police officers have considered opting out of their pension in the past 12 months, with 7% going on to stop contributions altogether.

The findings point to a growing trend driven by the ongoing cost-of-living crisis, with rising housing costs, inflation, and stagnant real-term pay forcing many officers to make difficult short-term financial decisions – often at the expense of their future.

Younger officers are particularly affected. Those under 35 are significantly more likely to both consider and act on pension opt-outs, highlighting a potential long-term generational impact on retirement outcomes.

Annette Petchey, Chief Executive Officer at Police Friendly, said: “The fact that nearly half of police officers have considered opting out of their pension should be a real wake-up call.

“There is a common assumption that police officers have their police pension to fall back on – a safety net for their future. But what we are now seeing is individuals having to make very difficult trade-offs between meeting today’s costs and protecting their future.

“When police officers feel compelled to step away from their pension, it can place strain on their own financial security and, for many, have wider implications for their families. It highlights just how challenging the current situation has become.

“For younger officers especially, opting out – even temporarily – can have a lasting impact on retirement outcomes. But officers quite clearly don’t feel there is an alternative.

“Ultimately, this isn’t all about pensions. It’s about whether police officers can afford to build a stable life and look ahead to a retirement that reflects the dedication they have made to the service.”

The report, based on over 13,500 responses from across the UK police family, also highlights:

68% of police officers report current financial concerns
56% say their financial situation has worsened over the past year
Nearly 4 in 10 are in significant debt when housing costs are included
15% report missing meals due to lack of money.

With many officers reporting they have less than £100 left at the end of each month, pension contributions – often a substantial deduction from take-home pay – are increasingly viewed as unaffordable in the short term.

However, the report warns that stepping away from pension contributions could have significant long-term consequences, particularly as housing costs in retirement continue to rise, and homeownership becomes less certain.

For those renting in later life, a standard police pension alone may not be enough to cover ongoing housing costs. In many cases, this could require an additional retirement savings pot in the region of £400,000 to £800,000, depending on individual circumstances.

Andy Rhodes OBE QPM, Service Director of the National Police Wellbeing Service, said: “The findings from Police Friendly’s latest survey echo the serious concerns we have about the financial challenges faced by those in policing.

“These findings can’t be viewed in isolation. We cannot underestimate the weight financial instability can have on a person’s mental health and wellbeing.

“Year-on-year, Police Friendly release findings from their annual survey – and the results get worse each time around. This is just one of many elements highlighting the growing strain and pressures being placed on the shoulders of police officers and their families.

“The only way we can stop this is for multiple key stakeholders to collaboratively address the key issues.

“We recognise that it can be difficult to reach out for support using work systems. If you are working in policing, or you have left the service, or you are a family member, and you are concerned about your finances or would like reliable advice, there are numerous confidential, independent options we must keep promoting.”

The findings also suggest that many officers are missing out on opportunities to build financial resilience beyond their pension – whether that’s saving for a first home, supporting family milestones, or creating a more secure retirement.

Annette added: “There is a clear need for better support, clearer communication, and improved financial education to help officers fully understand the value of their pension and the implications of opting out.

“Organisations such as Police Friendly continue to play an important role in supporting officers through financial education, savings options and wider long-term financial wellbeing initiatives.

“Helping individuals build confidence and resilience in their financial decisions is essential if we are to improve both short-term stability and long-term financial security across the Police Family.”

“Without this, we risk a generation facing increased financial insecurity later in life.”

Money Beat: Markets move. Your plan doesn’t have to. - Police Friendly & Metfriendly

Darren Coleshill — Tue, 03 Mar 2026 11:40:28 GMT

Open any news or finance app, and you’ll see it: headlines shouting about the latest share price crash or surge — it’s simply how markets work.

Ups and downs are normal. What matters is whether your savings and investments are set up to ride through them without you feeling panicked or the need to sell at the worst moment.

Finance people often talk about two golden rules in any strategy: 1. Diversification, and 2. Long-term thinking.

Diversification: don’t bet your future on one thing

Diversification is how finance people describe a simple idea: not putting all your eggs in one basket.

The Financial Conduct Authority’s (FCA) InvestSmart campaign describes diversification as: “spreading your investments across different financial products to reduce risk”.

In practice, this means avoiding a situation where your future depends on one company, one sector, or one ‘hot’ investment theme.

Long term: no need to check every day

Investing is meant to be over the long term; what matters is the value at the end compared with the value at the start, not the day‑to‑day fluctuations in between.

So when you are investing over the long-term there is less of a need to look at valuations all the time. Of course, if you want to be a hotshot investor watching and playing with the markets all the time – you may have to! There may be possible rewards to this but also be prepared to lose big money in a day too, so it may not be the way to manage your life savings. And that’s where we can help.

Experience matters

Which brings us on to managing money.

Most of us aren’t taught how to manage our money — not when it comes to long-term financial planning anyway.

So, when big decisions arrive, such as buying a first home, investing a pension lump sum, or making savings work harder, many of us are expected to just ‘figure it out’. Too many people are making important choices without the confidence or tools they deserve.

We see this all the time across the UK Police Family. When you’re juggling shift work and family life, it’s understandable that investing can feel complicated, overwhelming, and easy to put off until later.

How we structure our products to help

At Police Friendly and Metfriendly, we are dedicated to providing financial products tailored to the needs of members of the UK Police family at every stage of their careers.

We recognise the pressures of working in the Police; the limited time available to build financial knowledge; when you are likely to have the most and the least disposable income; and the financial goals you are likely to have at each stage.

With this in mind, we take the principles of diversification and long-term investing and create products that incorporate these for you without you having to plan and manage them all yourself.

Here’s how.

Diversification

All our products invest in our investment fund. The fund works away in the background to deliver returns to our members.

The good news: our fund is diversified- it invests money across a mix of assets, including shares, property, bonds and cash, which means we have done all the diversification legwork for you.

You can see below, in our current Investment mix, only 32% is invested in equities. This helps limit the impact of market highs and lows. Most of our members’ money is in stable fixed-income funds where the returns can be predicted with reasonable certainty.

Long-term thinking

All our products are designed to deliver a return over five years or more.

This means they are built for lifetime events – for example, buying a house, helping children through university, or retirement – rather than day-to-day expenditure that you might want to dip in and out of short-term savings for.

If you have lifetime events in mind, we have proved that our long-term approach works.

While past performance isn’t a promise of future returns, our comparisons show our fund has outperformed an average Cash ISA by nearly 2% over the past three years on a 10‑year annualised basis.

Our fund works slightly differently to an average Cash ISA, it doesn’t pay any interest, instead, you will typically receive an annual bonus and a potential final bonus when you’ve been invested for longer. For example, the published final bonus for a 15‑year ISA bond (single premium) is 41%.

We work with professional fund managers

To help you get what you want from your investment, we outsource the day‑to‑day management of our investment fund to professional fund managers. They focus on the detail, the discipline and the decisions — while you focus on your life and your goals.

Our chosen fund managers are Schroders, one of the world’s most established investment firms with more than £800bn in assets under management (as of 31 December 2025) and operations in 38 locations worldwide.

Schroders manages our significant investment portfolio with a clear focus on the long‑term objectives we have set on behalf of our members.

We watch the value, so you don’t have to

With our products, we provide an annual statement showing the value of your plan, including any annual bonus, so there’s no need to check on valuations daily.

The takeaway

Markets will always move — so the goal is to build a plan that spreads risk, ignores noise, and gives your money the time it needs to work.

The UK Government is now encouraging savers to consider Stocks & Shares ISAs over Cash ISAs for long‑term growth, noting that Stocks & Shares ISAs can offer “much higher” returns than cash over the long term. That long‑term difference is illustrated in the graph above.

So, while yes, investing might seem confusing and overwhelming at first, it is worth taking a proper look, because there are options available that make it far easier and less risky than you might think.

Where to start investing with Police Friendly & Metfriendly

If you want a calmer way to build wealth over time, our member-focused products are designed for different ways of saving.

They all invest in our fund that’s diversified, and, if you invest before the end of the tax year – 5^th April 2026, there are some great offers too.

Under 40 and saving for your first home, or later in life?
- Save in a Lifetime ISA and benefit from a 25% tax free Government savings bonus. The savings limit is £4,000 each tax year, so that means up to £1,000 in tax-free cash from the Government every year. What’s more, this still leaves you up to £16,000 each tax year to save in another type of ISA.
Want to save regularly from £30 a month or invest a lump sum of £2,000 or more.
- Save tax-free in our stocks and shares ISA. You and your family members each have an ISA allowance of £20,000 each tax year, so put away as much as you can and shelter your hard-earned savings growth from the tax man.
Lump sums beyond ISAs
- For larger one-off amounts (like a pension lump sum) when you have used all your annual ISA allowance, our With-Profit Bond is designed for investments from £2,000 and has no fixed term or upper savings limit.

This blog is for general information, not personal financial advice.

Offers available

Receive a £25 Amazon.co.uk Gift Card when you apply for a Monthly Savings ISA, Lifetime ISA or Junior ISA by 5th April 2026.

Invest or transfer £10,000 or more by 5th April 2026, and we’ll add an Instant Loyalty Bonus of up to £500 to your initial investment. In addition, we’ll give you a £50 Amazon.co.uk Gift Card.

Find out more about our offers here

Get a £50 Amazon.co.uk Gift Card for you refer who joins us for the first time. We’ll give them one, too, to welcome them onboard! Find out more here.

Eligibility and product features vary. Please check the product pages and Key Information Documents before you apply.

Money Beat: Why comparing savings and investment products isn’t as simple as it looks - Police Friendly & Metfriendly

Darren Coleshill — Wed, 28 Jan 2026 16:46:27 GMT

Human nature drives comparison, and rarely more so than when it comes to our finances.

When we’re choosing a savings or investment product, we naturally look for a simple headline to help us decide:

“This one pays 5%”

“That one is instant access”

“This one has no fees”

The problem is that financial products are rarely that simple. Many are marketed around a single feature – often an interest rate or projected return – but that headline alone rarely tells the full story.

To make a meaningful comparison, you need to step back and look at the bigger picture. Here are some of the factors worth considering.

The key factors to compare

Risk

Risk is often reduced to a single idea: “Could I lose my money?” That’s part of it – but not the whole story.

Some products expose your money to market movements, which means values can go up and down. In some cases, you could, indeed, get back less than you invested. Others (like our fund) limit market risk by spreading investments across a mix of different assets, like property, cash and government bonds, but introduce different trade-offs, such as slower, but potentially higher long-term growth.

Alongside the risk of loss of capital, there’s also inflation risk – the risk that your money loses purchasing power over time if returns don’t keep pace with rising prices.

You might even deem not being able to take your money out immediately a risk. We’ll explore that in more detail later.

Ultimately, risk isn’t the same for everyone, and it changes depending on your goals, time horizon and personal circumstances. Understanding what type of risk you’re taking – and why – is more important than avoiding risk altogether.

Return

Not all returns are created equal.

It’s important to understand the difference between:

Guaranteed returns – fixed outcomes you’ll receive if you meet the terms
Expected returns – what’s anticipated over time, but not promised
Illustrative returns – examples showing what could happen, not what will

Tax treatment also matters. For example, ISAs, like ours, allow your returns to grow free from UK income and capital gains tax, which can make a significant difference over time. Always look for whether quoted returns are gross or net of basic rate tax.

Free Event

If you’d like to learn more about how to maximise your tax-free savings, join our dedicated webinar. We will show you how to make the most of your tax-free allowance by saving regularly into our ISA, and how much you could shelter from the taxman every year.

Fees and charges

Fees can be easy to overlook – especially when performance figures are quoted before charges.

Things to watch for in particular are exit fees and commissions payable to third-party introducers. For interest, we neither charge or pay either.

Two products may appear to deliver similar performance, but the one with lower or clearer charges could leave you better off in the long run. What matters most is your outcome after fees, not the headline number before them.

Term

Some products are built for short-term needs, others for medium or long-term goals.

Ask yourself:

How long is my money tied up for?
What happens if I need to access it early?
Are there penalties or loss of benefits?

A product that works well for a five or ten-year goal may be unsuitable for money you need sooner. All our savings and investment products are designed to deliver their best returns over five years or more. If you are looking for a fixed-term investment, our 10 Year Savings Plan could be ideal, but if you need more flexible access, then one of our ISAs could be more suitable.

Access

Access isn’t just about whether you can get to your money – it’s about how and when.

Consider:

Notice periods
Penalties for early withdrawal
Whether access depends on market conditions

There’s often a trade-off here. Products offering higher long-term growth potential may limit short-term access, while instant-access products may offer a lower interest rate or sacrifice growth. In any circumstances, it is important to retain an emergency pot that you can access immediately.

Provider strength and protection

Knowing who is looking after your money – and what protections are in place really matters.

Brand reputation, FCA regulation, track record and financial strength can all give useful signals about how well your potential provider meets its responsibilities.

Alongside this sits the Financial Services Compensation Scheme (FSCS), which is often misunderstood. FSCS cover applies if a provider fails. This includes protection for deposits up to £120,000, or 100% protection in the case of long-term insurance products like ours. It does not protect you against investment performance or market movements.

Understanding whether your provider is owned by shareholders or structured as a mutual, like we are, can also be worth it. All our profits are distributed or reinvested for the benefit of members rather than paid out to external investors.

Provider accessibility

One final, but important thought:

In a digital age, it can often be difficult to talk to a real person, whatever the service might be.

Some people are happy managing everything digitally. Others value being able to speak to a real person, ideally based in the UK, and especially when making long-term financial decisions.

Knowing what support is available, where and when, can make a real difference to confidence and peace of mind.

The bottom line

Hopefully, you will get from this that no single factor tells the whole story.

A strong headline rate, a guarantee, or a well-known provider can all be part of the picture – but none should be looked at in isolation.

To protect yourself from a wrong decision, take your time. Ask more questions. Make sure you understand not just what a product offers, but how it fits with your goals, time horizon and comfort with risk.

If you’d like help navigating the options, our friendly UK-based team is here to explain – clearly and simply – where Metfriendly & Police Friendly products might fit. We can’t give financial advice, but we can give helpful context to make complex choices easier to understand.

Don’t miss out on our latest special offers!

Get MORE for your money with our offers and make the most of your tax-free savings allowance.

Looking to invest for 5 years or more tax-free, then we have some great offers.

Budget 2025: the major changes that could affect you - Police Friendly & Metfriendly

Darren Coleshill — Wed, 03 Dec 2025 15:52:46 GMT

After weeks of speculation, the Chancellor of the Exchequer has delivered the Government’s Autumn Budget, confirming its financial plans for the coming years.

We now know what’s changing – but what impacts you and the members of the Police Family? Here’s a quick rundown of the key measures and policy changes, and what they could mean for you.

Possible LISA reform

There are plans in place for potential reform of the Lifetime ISA (LISA), a product designed to help those aged 18-39 save for their first home or retirement. Currently, you can save up to £4,000 a year tax-free in a LISA and the Government will add a 25% bonus on top.

For all members of the Police Family under 40 – whether Officers, Staff or friends and family – if you want to get a free Government savings boost worth up to £1,000 every tax year, then this is ideal and the product is still available.

That said, a consultation due to be published in early 2026 will focus on the possible launch of a new product designed specifically to support first-time buyers. The Government said this will be a “simpler” product that, once available, will replace the LISA. Financial commentators — including Martin Lewis — expect this may include removing the current property price cap, which has limited many buyers, and saving for retirement after age 60. To be sure we’ll have to wait and see what the consultation, and subsequent changes if any, are made to the current product design.

In the meantime, get a LISA while you still can and, if you apply for one with us before December 19th 2025, you’ll get a £50 Amazon.co.uk Gift Card as an extra bonus when using the code Autumn25.

Find out more here.

Changes to ISAs

An important change to how ISA savers are able to manage their finances is on the way, as part of wider plans to promote higher levels of investing in equities to deliver stronger returns to savers over the long term.

From April 2027, the annual cash ISA limit for under-65s will be reduced to £12,000 within the total annual ISA allowance of £20,000. For over-65s, the cash ISA allowance remains unchanged at £20,000.

You’ll still be able to invest up to £20,000 in stocks and shares ISAs each year. If you want to spread your savings across cash and shares, you’ll have the option to put up to £12,000 into a cash ISA, with the remaining £8,000 allowance able to go into stocks and shares ISAs.

These changes only apply to new money going into ISAs; existing savings won’t be affected.

As previously stated, the new £12,000 cash ISA limit will not apply to over-65s. People in this age group will still be able save up to £20,000 tax-free in cash ISAs each financial year.

Moreover, annual thresholds will be held at £4,000 for LISAs and £9,000 for Junior ISAs until April 2031. The annual £4,000 LISA allowance forms part of your overall £20,000 ISA allowance, leaving those that fully fund a LISA with a further £16,000 available each tax year to invest in an ISA. The Junior ISA allowance is in addition to your ISAs.

Even with these changes, this doesn’t have to mean greater headaches for members of the Police Family when deciding how to save. Our Monthly Savings ISA remains a flexible saving tool for delivering long-term returns on investment. Furthermore, it is already classed as a stocks and shares ISA, meaning your full £20,000 allowance can be deposited here.

Find out more here.

Income tax and NI threshold freeze extended

The Government has confirmed there will be no increase in the headline rates of either income tax or national insurance (NI) this year.

However, income tax and NI thresholds – which set the amount of income at which you pay different rates of these taxes – will be frozen until April 2031. This is three years longer than previously planned.

Often described as a ‘stealth tax’, this extension of the current thresholds means lots of people are likely to find themselves paying more tax in the coming years as average earnings and inflation rise.

As a result, we’re going to see more and more Police Officers falling into higher rate tax bands as their salaries increase through natural career progression and annual planned pay increases. This will result in a higher proportion of their earnings being paid in tax – because while their income is rising, tax thresholds are staying the same.

The freezing of thresholds could also mean more Officers move in and out of higher tax bands, especially when earnings like overtime pay are taken into account.

This can have knock-on effects like triggering the High Income Child Benefit Charge, which is based on your adjusted net income. If you’re affected by this, you can contact HMRC to check how your net income is being applied and make sure you’re not being overcharged.

A note on your Personal Savings Allowance

Another possible knock-on effect of the frozen income tax and NI thresholds relates to your Personal Savings Allowance (PSA). This is the amount you can earn on your savings (excluding ISAs) each financial year without paying tax.

Your PSA depends on what income tax band you’re in:

Basic rate taxpayers (i.e. your taxable income is £12,571-£50,270 a year) can earn up to £1,000 in non-ISA savings interest a year with no tax.
Higher rate taxpayers (earning taxable income of £50,271-£125,140 a year) can earn up to £500 in non-ISA savings interest a year with no tax.
Additional rate taxpayers (earning taxable income over £125,140 a year) don’t get a PSA.

It’s important to be aware that moving into a higher tax band in the coming years could see your PSA reduced, which will affect how much savings interest you can earn before being taxed.

State pension, benefits increases and other changes

In April 2026, the state pension will increase by 4.8%. This means the full new state pension – which is for people who reached state pension age after April 2016 – will rise from £230.25 to £241.30.

Elsewhere, the Budget included several other policy changes that, depending on your situation, could affect you financially.

It was confirmed that:

Certain levies will be removed from energy bills from April 2026. According to the Government, this will save the average household on a dual-fuel tariff £150 a year.
The two-child Universal Credit limit will be lifted from April 2026. This means families claiming Universal Credit will get more benefits if they face extra costs because they have more than two children.
The Government is freezing regulated rail fares in England until March 2027. This is the first such freeze for 30 years.
The cost of a single NHS prescription in England will also be held at £9.90 for a year from April 2026.
Drivers of electric vehicles (EVs) will pay a new mileage-based charge from April 2028, in addition to current vehicle excise duty. This will cost the average EV driver around £20 per month, according to the Government.

Getting to grips with your money

The changes in the Budget and the various ways they could affect you might have you thinking more carefully about your own financial situation and how to improve it.

If that’s the case, you could benefit from attending one of our forthcoming webinars. These events are designed to provide expert help with everything from making the most of your savings to planning for retirement. You can find out more and book your free place here.

If you’d like to talk about your financial options and understand how our products could support your saving or investing plans for the years ahead, feel free to get in touch. Call 01689 891454 to talk to one of our friendly, UK-based team. Our lines are open Mon-Thurs 8:30-5:00pm and Fri 8:30-4:30pm.

In the company of Angelas - Police Friendly & Metfriendly

Ben Gratrix — Wed, 08 Oct 2025 15:32:54 GMT

After my last attachment with TSG’s U5:4, Inspector Ross Morton from the City of London Police accused me of straying when I posted a photo which included one of the City’s unique bollards. Having been caught red-handed, it didn’t feel much of a penance to accept Ross’s invitation to be in his patch officially, so I joined one of the City of London Police’s Operation Reframe exercises, which was hosted on the night by Commander Umer Khan.

What does inflation mean to you? - Police Friendly & Metfriendly

Darren Coleshill — Thu, 28 Aug 2025 14:38:48 GMT

UK Inflation for July, as measured by the Consumer Price Index (CPI), was 3.8% according to figures released by the Office of National Statistics.

Adding to this, will be the 2% increase in gas and electricity prices from October, just announced by energy regulator, Ofgem. The increase means a household using a typical amount of energy will pay £1,755 a year, up £35.

Inflation isn’t just a headline figure on the news — it’s something most of us feel directly, whether in the cost of the weekly shop, the energy bill dropping through the letterbox, or the rent or mortgage going out each month.

Inflation is a reminder that it isn’t just how much money that comes in that matters, but how far it stretches when it goes out.

Inflation in plain terms

Put simply, inflation measures how much prices rise over time. If inflation is 4%, something that cost £100 a year ago will now cost £104. That might not sound dramatic, but over time, it steadily reduces the spending power of your money.

For example, according to the Bank of England’s inflation calculator, £100 in 2000 would buy goods and services that would cost over £180 today.

The good news is that inflation has eased from the double-digit highs of 2022–23; however, it remains a significant factor in household finances. This is particularly true when essentials, from food to housing costs, are still rising faster than many would like.

The picture for Police families

Our own Police Family Finance Index shows just how real this feels.

Almost two-thirds of Police Officers (64%) say they have financial concerns, with 55% reporting a significant impact on their mental health. Rising housing costs, higher childcare bills, and increased day-to-day spending all play a part.

National data tells a similar story: families with children, mortgage-holders, and renters are among those who feel inflation most sharply. For some, the focus is on balancing the food budget. For others, it’s about coping with higher mortgage payments after coming off a fixed-rate deal. Retired households, meanwhile, worry more about heating and energy bills.

So, while inflation is the number reported in the headlines, what it means to you depends heavily on your circumstances.

Building resilience against inflation

The recent 4.2% pay award for Police is an important step in the right direction — but inflation underlines why financial resilience matters. Resilience means being able to absorb price rises or unexpected costs without it knocking your finances off course.

That’s why it can be useful to think about how to make the most of the money you have today, so it supports you tomorrow.

Practical steps you can take

Budget with inflation in mind – keep an eye on categories where costs are rising most quickly, particularly in essentials such as food, fuel and energy, which are not easy to cut back on. Small adjustments might be needed elsewhere in your budget to free up money for these more important priorities.
Make your pay rise work harder – when income goes up, it’s tempting to let spending rise with it. One option is to divert a slice of any increase straight into savings or investments before it gets absorbed into day-to-day spending.
Think long-term about savings – cash savings are essential for emergencies, but they often struggle to keep pace with inflation. Long-term options such as ISAs or Savings Plans with guaranteed bonuses can offer the potential for steadier growth that may outpace inflation, especially when combined with tax advantages. This mirrors the Government’s current narrative: that investing sensibly and for the long term can play a valuable role in protecting future living standards.

Looking ahead

Inflation is lower than it was, and pay awards are helping to ease the strain, but the real difference comes from how you prepare and plan.

Building up savings, exploring investment options, and taking practical steps today can help ensure that inflation doesn’t dictate your financial future. They can also give you peace of mind, knowing you have options, even when costs go up.

At Police Friendly and Metfriendly, we can’t control the economy — but we can help you take control of your financial resilience. If you’d like to talk through your options, our team is here to help — get in touch today to see how we can support you in planning and building your financial future.