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

Bridging the generational pension confidence gap

Bridging the generational pension confidence gap

'The knowledge gap is universal'

Robert Cochran
clock 27 November 2025 • 5 min read
Warnings of 'damaging' pre-Budget pension speculation impact

Warnings of 'damaging' pre-Budget pension speculation impact

Commentators say speculation on pension issues has negatively impacted saver confidence

Jasmine Urquhart
clock 27 November 2025 • 3 min read
No change to tax-free lump sum is 'welcome' move

No change to tax-free lump sum is 'welcome' move

The chancellor chose to leave the tax-free lump sum unchanged in the Autumn Budget

Holly Roach
clock 27 November 2025 • 3 min read