The government has “not heeded warnings” about the necessary reform needed to make the Lifetime ISA (LISA) fairer and more appealing to consumers, according to the Treasury Committee.
In its report, released today (11 September), the committee stated it was unconvinced that the LISA is helpful to those in genuine need of financial support. Data from the Wealth and Assets Survey showed that, in 2018–20, 47% of LISA wealth was held by those in the top household income quintile. The Resolution Foundation called expenditure on this policy "highly regressive". MPs also asked for LISA savings to be treated like other pension savings with regards to the Universal Credit means test. Without these changes, LISAs could damage Universal Credit claims, something which the c...
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