Source · Select Committees · Treasury Committee
Recommendation 9
9
Accepted in Part
First property purchase offers unique opportunity to explain Lifetime ISA merits.
Recommendation
The moment at which people purchase their first property offers a singular opportunity for the Government and/or Lifetime ISA providers to explain the merits of the Lifetime ISA as a retirement savings vehicle. (Recommendation, Paragraph 88) Value for money for the Government
Government Response Summary
The government acknowledges the importance of messaging and commits to working with the industry to consider ways to improve communication about the Lifetime ISA's merits, despite having no direct contact with individuals.
Government Response
Accepted in Part
HM Government
Accepted in Part
The Government is committed to making ISAs, including Lifetime ISAs, as simple and flexible as possible. Individuals can open and pay into one Lifetime ISA per tax year and are free to have multiple accounts with different providers. There is no requirement for Lifetime ISA users to close an account after a house purchase, however, some individuals may prefer to open a different account in order to explore different rates and investment options. The Government regulates the approval of ISA managers and the rules within which the ISA and managers must operate. There is no direct contact or interaction with individuals. However, we will work with industry to consider ways in which it could improve its messaging.