Sat, 05 Jul 2025

Sat, 05 Jul 2025 Excellent or awful - why Lifetime ISAs divide opinion

A report by MPs says the product needs to be reformed and many savers who have been in touch tend to agree.

* Since the launch of Lifetime ISAs (LISAs) in 2017, only 6% of eligible adults have opened one.
* Around 1.3 million LISA accounts remain open.
* Many people who used LISAs to buy their first home have hit out at the penalty after being caught out by the £450,000 limit.
* A 28-year-old woman from London lost around £750 when she bought her home in 2023.
* Commentators and campaigners are calling for changes to the LISA rules, including easing penalties and extending the age limit for opening a LISA.
* Martin Lewis, founder of MoneySavingExpert, says the £450,000 threshold is "unjust, unfair and the rules need changing".
* Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, has also called for changes to the LISA rules, including easing penalties and extending the age limit.
  >>