Treat Lifetime ISA savings equally to other pension products within Universal Credit means testing.
If the Government wants to encourage long-term saving for retirement through Lifetime ISAs, it must treat the savings in a Lifetime ISA in the same way as other pension savings products as part of the Universal Credit means test. (Recommendation, Paragraph 106)
Government response. The government rejects the recommendation to treat Lifetime ISA savings like other pension products for Universal Credit, stating it is a savings product that counts towards capital calculations for UC eligibility, with a rationale for targeting support.
HM Treasury