Govt's £47m withdrawal take highlights need for Lifetime ISA change

Govt has pocketed £127m of saver money in withdrawal charges

clock • 3 min read

It is time the government permanently reduces the LISA early withdrawal penalty, writes Laura Suter

Lifetime ISAs (LISA) are still really in their infancy, but the changing economic landscape of the past six years since they were launched has only increased calls for their generous yet restrictive nature to change. Figures published by the government last week reveal a worrying increase in the number of LISA holders being punished for withdrawing funds from their account early. The numbers show 56,100 people used a LISA to buy their first property in 2022/23, the highest figure yet. It means in total 171,000 people have made use of the government bonus to boost their deposit savings...

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