Source · Select Committees · Treasury Committee
Recommendation 3
3
Deferred
Increasing Lifetime ISA unauthorised withdrawals and charges suggest the product is not working as intended.
Conclusion
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 summary AI-generated
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.
Government Response
The government responded to this report on 11 September 2025. No passage in that response could be matched to this conclusion. Read the response document ↗