The amount paid into lifetime ISAs (LISAs) in the 2022/23 financial year increased by 10% annually, despite HM Revenue and Customs (HMRC) revising the data.

Although the figure was less than initially stated, the amount paid into accounts jumped by £200m year-on-year.

In the 2022/23 period, 56,900 LISA accounts were used to buy a home, an increase of 1,150 in a year, with savers drawing an average of £14,927 each.

Head of personal finance at Hargreaves Lansdown, Sarah Coles, said: "Problems with LISA figures mean HMRC has had to reissue its annual savings statistics, correcting the errors. But while it has redrawn the enormous leap in LISAs as an impressively big step up, the overall picture remains the same.

"It was a big year for the LISA, attracting 10% more cash than a year earlier. This is an impressive feat given how incomes were squeezed during the 2022/23 tax year, with inflation spending half the year at 10% or more. Some of this will be savers and investors glimpsing an opportunity at a time when rates were high, stock markets were strong and house prices were falling."

Across adult ISAs in 2022/23, £71.6bn was paid into 12.4 million accounts. This is an increase of £4.7bn year-on-year.

The amount paid into cash ISAs increased by 35% to £10.7bn, while the share of new ISAs that went into cash accounts rose by 63% in the same period.

Coles stated: "Massive rises in interest rates meant it was a huge year for the cash ISA. There’s every sign that the current tax year could see even more enthusiasm for cash ISAs. The ISA season that peaks in April has had a long tail of dragonesque proportions, and savings levels were still elevated in October."

The amount paid into junior ISAs (JISAs) increased to £1.5bn, with the number of accounts increasing from 1.21 million to 1.25 million in 2022/23.

However, £6.2bn was invested into stocks and shares ISAs in this period, with the number of accounts falling by 126,000.

Coles concluded: "It was another great year for JISA saving and investing. The average paid in remained pretty steady at £1,220, which if paid monthly and maintained for 18 years, with 5% growth, could build a nest egg of more than £35,500. It’s a positive sign that most of the money in JISAs went into investments.

"Stocks and shares ISAs lost out slightly to cash ISAs during the year, but not dramatically so, and as interest rates look set to fall, we can expect stocks and shares ISAs to make another comeback."

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