8th Report - Lifetime Individual Savings Account

Select Committee
Treasury Committee HC 607 30 June 2025
Report Status Government responded
Conclusions & Recommendations 15 items (6 recs)
Source View on Parliament website
Government Response (AI assessment · 15 of 15 classified)
Accepted 6
Accepted in Part 1
Acknowledged 4
Deferred 2
Not Addressed 1
Rejected 1
Government response
3rd Special Report - Lifetime Individual Savings Account: Government Response · published 11 Sep 2025
Read the government response ↗ Response on the tracker
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Recommendations & Conclusions

4 results
1 Conclusion Acknowledged
Lifetime ISA may not be an efficient use of taxpayer money for its dual objectives.
Conclusion
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. … Read more
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.
HM Treasury
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2 Conclusion Acknowledged
Cash Lifetime ISAs may not achieve optimal long-term retirement outcomes compared to invested assets.
Conclusion
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 … Read more
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.
HM Treasury
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7 Conclusion Acknowledged
Lifetime ISA may not be suitable for additional rate taxpayers, despite benefits for others.
Conclusion
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 … Read more
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.
HM Treasury
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8 Conclusion Acknowledged
Consider self-employed interests in any future ISA market reforms due to historically low savings.
Conclusion
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 … Read more
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.
HM Treasury
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