Major financial firm urges government not to scrap Lifetime ISAs

• Rachel 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.

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Moneybox urges government not to scrap Lifetime ISA