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,...

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