AJ Bell has warned that the government will risk a backlash from younger voters if it “caves to pressure” to scrap the Lifetime ISA (LISA), a product created in 2016 to help younger people save for a first home or retirement.
Specifically, the LISA was criticised for being unpopular, too complex, while also having “perverse incentives” and not complementing traditional pensions.
Commenting, AJ Bell senior analyst Tom Selby said: “The Government will cause uproar among younger voters if it caves in to pressure to scrap the Lifetime ISA. The product has been a hit with consumers so far and it would be ludicrous to pull the rug from under people now.
“Nobody is claiming the LISA is perfect, and policymakers need to look at ways to make the transfer process easier to navigate. The 25% exit penalty also remains a bone of contention and should be reduced so as not to excessively penalise savers.
“But ditching the LISA now would make little sense and risks leaving hundreds of thousands of people who have already invested stuck in limbo.”
Latest News
-
IHT receipts total £4.39bn in six months to September
-
Younger advisers more likely to work with new clients, study finds
-
Average price of new property on market climbs 0.3%
-
Chancellor revives ISA allowance reforms
-
FCA calls on banks to improve romance fraud prevention
-
Third of over-60s have no tax-free cash plans
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories