Source · Select Committees · Treasury Committee
Recommendation 13
13
Not Addressed
Inconsistency identified in Lifetime ISA treatment within Universal Credit eligibility assessments.
Conclusion
The Government’s argument that the LISA should be included within a Universal Credit eligibility assessment because the Government has contributed to the balance within the LISA is inconsistent. The Government provides higher levels of contribution through tax relief to many other pension products that are not included in the Universal Credit eligibility assessment, such as workplace pensions and SIPPs. Treating one retirement product differently from others in that regard is nonsensical. (Conclusion, Paragraph 105)
Government response summary AI-generated
The government reiterates that the Lifetime ISA is treated as a savings product for Universal Credit purposes and explains its capital limit policy, but does not directly address the committee's specific criticism about the inconsistency of treatment compared to other pension products.
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 ↗