Source · Select Committees · Treasury Committee
Recommendation 15
15
Deferred
Include warnings on Lifetime ISA products about inferiority for potential Universal Credit claimants.
Recommendation
If the Government is unwilling to equalise the treatment of the Lifetime ISA with other Government-subsidised retirement savings products in Universal Credit assessments, Lifetime ISA products must include warnings that the Lifetime ISA is an inferior product for anyone who might one day be in receipt of Universal Credit. Such warnings would guard against savers being sold products that are not in their best financial interests, which might well constitute mis-selling. (Recommendation, Paragraph 107) 47
Government Response Summary
The government will consider the recommendation regarding warnings on Lifetime ISA products in future policy development. It will also work with industry and other departments to consider ways to improve messaging about how savings might affect Universal Credit entitlement, noting that LISA is treated as a savings product.
Government Response
Deferred
HM Government
Deferred
We will consider the recommendation in the future development of the policy. However, the Lifetime ISA is a savings product and other savings and investments products, which may also be used for later life, also count towards calculation of Universal Credit. The Government is involved at the point of approval of providers. There is no direct contact or interaction with individuals. The Money and Pensions Service (MaPS), an arm’s length body of the Government, provides comprehensive guidance to support consumers at every stage of their financial lives. MaPS offer a range of tools and calculators to help consumers with various issues around everyday money and savings. This includes guidance on the Lifetime ISA which covers the implications for benefit eligibility. We will work with industry and other Government Departments to consider ways to improve the messaging about the implications of savings and investments might affect entitlement to Universal Credit.