- FTSE 100 and FTSE All-Share hit record highs in 2026,
rewarding long-term investors
- £1,000 invested in the FTSE 100 five years ago would now be
worth around £1,770 – £600 more than cash savings
- Government reforms will help more people invest with
confidence, while keeping strong protections in place
The FTSE reaching record highs in 2026 is not just a milestone
for markets – it highlights how investing in British companies
can make a real difference to people's finances over time.
Someone who saved £1,000 in a Cash ISA at 3 per cent five years
ago would now have around £1,160 less than if their cash had kept
up with inflation. The same £1,000 invested in the FTSE 100 would
be worth around £1,770 – about £600 extra.
Even with a higher 4 per cent cash return, £1,000 would grow to
around £1,220 over five years, still well behind the returns
delivered by investing in UK shares. A £1,000 investment in the
FTSE All-Share over the same period would now be worth around
£1,660.
These indicative figures show why the government wants to help
more people take a stake in UK growth, so households can share
more directly in the success of British businesses and the
strength of the UK economy.
Economic Secretary to the Treasury said:
“The FTSE 100 hitting a record high shows the strength of our
capital markets and what investing can do for people's finances
over the long term.
“For too long, investing has been perceived as out of reach for
many families. We're changing that by making sure more people can
become aware of the benefits of investing with clearer
information so they can invest with confidence and make informed
choices about their money.”
As set out at Mansion House 2025, the government is reforming the
framework around investing to remove unnecessary barriers that
stop people taking part, while keeping strong consumer
protections firmly in place.
This includes working with regulators to ensure risk warnings are
clear and meaningful, rather than discouraging, and backing an
industry-led campaign to explain both the benefits and risks of
investing in a straightforward, accessible way.
Together, these reforms help working people grow their money over
time, strengthen UK capital markets and ensure more families have
a stake in the country's economic success.
Notes to editors
