Wed, 10 Sep 2025

Wed, 10 Sep 2025 Ministers must do more on Lifetime Isa reform, say MPs

The Treasury Committee says the complex product, used by first-time buyers, needs an overhaul.

* Treasury Committee warns that Lifetime Isas (LISAs) have not been sufficiently reformed, despite being mis-sold and unsuitable for many people.
* The government is forecast to lose £3bn over five years due to LISAs.
* Only 6% of eligible adults have opened a LISA account since its launch in 2017, with around 1.3 million accounts still active.
* Research found that 87% of first-time homebuyers who used their LISA could have done so without one.
* The committee argues that the LISA's dual purpose makes it difficult for consumers to choose suitable investment strategies.
* The government has been criticized for not changing rules that penalize benefit claimants, which should be clearly labeled as inferior to other pension schemes.
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