Govt faces backlash if LISA is scrapped - AJ Bell

200,000 LISAs opened so far

Hannah Godfrey
clock • 1 min read

The government caving to pressure to scrap the lifetime ISA (LISA) would risk backlash and "uproar" from younger voters, AJ Bell has warned.

Senior analyst Tom Selby said the government would cause "uproar" among younger voters if it bows to pressure from MPs on the Treasury Committee to scrap the LISA, a product that can be used by prospective first-time buyers to save for a home. "Nobody is claiming the LISA is perfect, and policymakers need to look at ways to make the transfer process easier to navigate," he said. "The 25% exist penalty also remains a bone of contention and should be reduced so as not to excessively penalise savers."  Laura Suter: Let's tackle Lifetime ISA gremlins In a report published last month,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government again rejects Waspi compensation after review

Government again rejects Waspi compensation after review

DWP: Creation of compensation scheme would be ‘highly impractical’ and ‘time-consuming’

Martin Richmond
clock 29 January 2026 • 3 min read
Pension transfers and the FCA: A well-meaning intervention that risks falling short

Pension transfers and the FCA: A well-meaning intervention that risks falling short

'The secret is giving people the right information at the right time'

Rachel Vahey
clock 28 January 2026 • 4 min read
State pension deferrals: 42,000 who postponed took benefit in 2023/24

State pension deferrals: 42,000 who postponed took benefit in 2023/24

FoI request from provider Royal London

Jenna Brown
clock 28 January 2026 • 3 min read