Source · Select Committees · Treasury Committee
8th Report - Lifetime Individual Savings Account
Treasury Committee
HC 607
Published 30 June 2025
Conclusions (4)
1
Conclusion
Acknowledged
We endorse the Government’s policy objectives of supporting first-time buyers and encouraging long-term retirement savings. However, the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives, which might require separate, tailored policies. (Conclusion, Paragraph 24)
Government Response Summary
The government committed to working with the industry to consider ways to improve messaging around Lifetime ISAs, while reaffirming its commitment to making ISAs simple and flexible.
2
Conclusion
Acknowledged
Some Lifetime ISA providers only offer the cash Lifetime ISA. Retirement savings held within cash Lifetime ISAs may not achieve the best outcome for a Lifetime ISA holder over the long term, compared with investing in higher risk but higher return assets such as bonds and equities. (Conclusion, Paragraph 25)
Government Response Summary
The government reiterated the purpose and success of the Lifetime ISA and stated that it keeps all aspects of the policy under review and carefully considers all representations received, without committing to specific action on the performance of cash LISAs.
7
Conclusion
Acknowledged
We recognise the risks for certain individuals opting to save for retirement in a Lifetime ISA instead of a workplace pension, because of lower tax relief for higher- and additional-rate taxpayers and forgoing employer contributions. Although we recognise that it can be a valuable complementary saving product for many, such …
Government Response Summary
The Government recognises the importance of the Lifetime ISA and is publishing two pieces of externally commissioned research on GOV.UK to further improve our understanding of how the LISA is used.
8
Conclusion
Acknowledged
The available evidence indicates that saving for retirement with a Lifetime ISA is working well for self-employed people. Any Government reforms to the ISA market must take the interests of the self-employed into account, because self-employed people have historically achieved low levels of retirement saving. (Conclusion, Paragraph 87)
Government Response Summary
The Government recognises the importance of the Lifetime ISA and is publishing two pieces of externally commissioned research on GOV.UK to further improve our understanding of how the LISA is used.