Senior figures from the Conservative, Labour and Scottish National parties have joined experts from the savings industry and accounting profession to urge simplification.
They have suggested removing the ISA name from the Help to Buy scheme, closing the Lifetime ISA to new entrants and folding all remaining ISAs into a single, simple, easily accessible "Everything ISA".
Chartered Financial Planner Rachael Griffin from Old Mutual Wealth fears people will lose trust in ISAs if they are not easy enough to understand still.
She said: “Navigating the world of ISAs has become as complicated as working your way through a maze blindfolded.
“A simplification of ISAs and, in particular, the establishment of an Everything ISA, could mean savers just need to get grips with one set of rules and features. The AAT’s proposal that the ISA is opened as soon as a baby’s birth is registered sets up a new generation of savers with the tools they need.
“The LISA is supposed to be a one-stop shop savings vehicle that combines saving for the first home and for a pension. However, it is muddled and has left young people uncertain about where to invest.”
The report’s recommendations include:
• Establishing an "Everything ISA" when a baby's birth is registered, ensuring future generations are encouraged to save
• When opening any savings account, a tick-box option stating "Add this to your ISA?" should be provided, further increasing awareness and consideration of saving in an ISA amongst adults
• An "Everything ISA" dashboard should be created so that savers can see all their ISA savings products in a single location
• The annual savings limits should be scrapped in favour of a £1m lifetime contributions allowance
Conservative MP Sir Graham Brady, said: "ISAs have been a very effective tool for promoting saving and the financial independence that can bring. Simplifying the ISA regime and making it easier for people to save, at times in their life when they can afford to do so, would help more people to provide effectively for their future."
Labour MP Chris Leslie, said: "The environment for savers is quite different from when ISAs were first introduced so it's time to review and refresh the thinking about these comparatively well-known and widely-used products.”