Major financial firm urges government not to scrap Lifetime ISAs

Wednesday 27 May 2026 14:36 BSTRachel Reeves announced changes to ISA products, including a cut to the cash ISA limit from April 2027 and a review of the Lifetime ISA (LISA). The government is considering replacing the LISA with a new “first-time buyer ISA” by 2028, citing concerns over its dual purpose and withdrawal penalties. Moneybox, the UK's largest LISA provider, has urged the government to fix the existing product rather than replace it, proposing a three-point plan to address issues like the withdrawal penalty and property price cap. Moneybox argues that the LISA is effective for the majority of users, supporting consistent saving and better long-term financial outcomes. Separately, Moneybox reported record 2025 revenues of £115m and a significant increase in customer numbers, while also raising its Cash ISA rate to 4.75 per cent. In fullMoneybox urges government not to scrap Lifetime ISA

Raccontata daindependent.co.ukmirror.co.uk