3
Conclusion
8th Report - Lifetime Individual Saving…
Deferred
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 AI summary
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.
Read full response →
HM Treasury
15
Recommendation
8th Report - Lifetime Individual Saving…
Deferred
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 …
Read more
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 warnings would guard against savers being sold products that are not in their best financial interests, which might well constitute mis-selling. (Recommendation, Paragraph 107) 47
Show less
Government response AI summary
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 that LISA is treated as …
Read full response →
HM Treasury