Source · Select Committees · Treasury Committee
Recommendation 4
4
Balance reducing the Lifetime ISA withdrawal charge against government spending impact, retaining deterrent.
Conclusion
Many people have lost a portion of their savings due to a lack of understanding of the withdrawal charge or because of unforeseen changes in their circumstances, such as buying a first home at a price greater than the cap. However, the case for reducing the charge must be balanced against the impact on Government spending. The Lifetime ISA must include a deterrent to discourage savers from withdrawing funds from long-term saving. (Conclusion, Paragraph 46) Saving for a home with the Lifetime ISA
Government Response
A response document is linked to this report, dated 11 September 2025. Response attribution to this conclusion has not been verified. Read the response document ↗