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
Clear

Recommendations & Conclusions

2 results
3 Conclusion Deferred
Increasing Lifetime ISA unauthorised withdrawals and charges suggest the product is not working as intended.
Conclusion
An increasing number of people are making unauthorised withdrawals and incurring the withdrawal charge, which may indicate that the Lifetime ISA is not working as intended. (Conclusion, Paragraph 33)
Government Response Summary
The government explained how Lifetime ISAs are factored into Universal Credit calculations and justified the existing capital limits, rather than directly addressing why increasing unauthorised withdrawals suggest the LISA is not working as intended.
HM Treasury
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15 Recommendation 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 … Read more
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.
HM Treasury
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