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UK MPs Demand Lifetime ISA Reform Before Budget

9/11/2025

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Summary

Story summary

The UK Government has not responded to the Treasury Committee's recommendations for reforming the Lifetime ISA (LISA), which MPs believe inadequately supports those in financial need.
MPs propose treating LISA savings like pension savings in the universal credit means test.
They recommend clear warnings for LISA users about potential disadvantages for universal credit claimants.
Research indicates that 87% of LISA users could have purchased their first home without it, questioning its effectiveness.
Dame Meg Hillier calls for further reform before the upcoming Budget.

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Story summary

The UK Government has not responded to the Treasury Committee's recommendations for reforming the Lifetime ISA (LISA), which MPs believe inadequately supports those in financial need.
MPs propose treating LISA savings like pension savings in the universal credit means test.
They recommend clear warnings for LISA users about potential disadvantages for universal credit claimants.
Research indicates that 87% of LISA users could have purchased their first home without it, questioning its effectiveness.
Dame Meg Hillier calls for further reform before the upcoming Budget.