Select Committee · Treasury Committee

Lifetime ISA

Status: Closed Opened: 6 Jan 2025 Closed: 11 Sep 2025 6 recommendations 9 conclusions 1 report

The Treasury Committee is inquiring into whether the Lifetime Individual Savings Account (LISA) is still an appropriate financial product nine years after it was created. Read the call for evidence to find out more about this inquiry.

Reports

1 report

Title	HC No.	Published	Items	Response
8th Report - Lifetime Individual Savings Account	HC 607	30 Jun 2025	15	Responded

Recommendations & Conclusions

2 items

3 Conclusion 8th Report - Lifetime Individual Saving… Deferred

Increasing Lifetime ISA unauthorised withdrawals and charges suggest the product is not working as intended.

An increasing number of people are making unauthorised withdrawals and incurring the withdrawal charge, which may indicate that the Lifetime ISA is not working as intended. (Conclusion, Paragraph 33)

Government response. The government explained how Lifetime ISAs are factored into Universal Credit calculations and justified the existing capital limits, rather than directly addressing why increasing unauthorised withdrawals suggest the LISA is not working as intended.

HM Treasury

15 Recommendation 8th Report - Lifetime Individual Saving… Deferred

Include warnings on Lifetime ISA products about inferiority for potential Universal Credit claimants.

If the Government is unwilling to equalise the treatment of the Lifetime ISA with other Government-subsidised retirement savings products in Universal Credit assessments, Lifetime ISA products must include warnings that the Lifetime ISA is an inferior product for anyone who might one day be in receipt of Universal Credit. Such …

Government response. The government will consider the recommendation regarding warnings on Lifetime ISA products in future policy development. It will also work with industry and other departments to consider ways to improve messaging about how savings might affect Universal Credit entitlement, noting …

HM Treasury

Oral evidence sessions

2 sessions

Date	Witnesses
23 Apr 2025	Emma Reynolds MP · Department for Environment Food and Rural Affairs, Laura Webster · HM Treasury	View ↗
26 Feb 2025	Anne Fairweather, Head of Government Affairs and Public Policy at Hargreaves Lansdown, Brian Byrnes, Head of Personal Finance at Moneybox, Charlotte Harrison, Chief Executive of Home Financing at Skipton Building Society, Funmi Olufunwa, Finance Expert and Founder of Hoops Finance, Martin Lewis, Founder and Executive Chair of Money Saving Expert, Michael Johnson, Research Fellow, Richard Stone, Chief Executive at the Association of Investment Companies	View ↗

Correspondence

10 letters

Date	Direction	Title
6 May 2025	—	Correspondence from HMRC on quantitative and qualitative research on Lifetime I…
22 Apr 2025	—	Correspondence from Skipton Building Society regarding Lifetime ISA data reques…
22 Apr 2025	—	Correspondence from the Chair to Skipton Building Society regarding Lifetime IS…
22 Apr 2025	—	Correspondence from Hargreaves Lansdown regarding Lifetime ISA data request, da…
22 Apr 2025	—	Correspondence from the Chair to Hargreaves Lansdown regarding Lifetime ISA dat…
22 Apr 2025	—	Correspondence from Moneybox regarding Lifetime ISA data request, dated 9 April…
22 Apr 2025	—	Correspondence from Moneybox regarding Lifetime ISA data request, dated 21 Marc…
22 Apr 2025	—	Correspondence from the Chair to Moneybox regarding Lifetime ISA data request, …
22 Apr 2025	—	Correspondence from HM Revenue and Customs regarding Lifetime ISA data request,…
22 Apr 2025	—	Correspondence from the Chair to HM Revenue and Customs regarding Lifetime ISA …