29/05/2026
This week we delivered an open letter to the chancellor, urging the government to build on the success of the Lifetime ISA (LISA), rather than replacing it.
The Lifetime ISA is working. By offering savers a 25% bonus on their money (worth up to £1,000 each tax year), the LISA encourages positive behaviour, and it has already enabled hundreds of thousands of people to buy their first home, and is helping over a million more grow their deposits.
A recent survey of Moneybox Lifetime ISA savers found that almost 6 in 10 had been able to save a deposit faster than would have otherwise been possible, and almost half (49%) credited the government bonus being paid monthly as motivation to keep them saving consistently.
With some thoughtful updates the LISA can help even more first-time buyers, today and in the future. When asked how the LISA could be improved, more than 80% of savers want the property price cap (currently £450,000) to increase in line with house prices, and three-quarters want the withdrawal penalty to be reduced or removed to give them more flexibility.
A new product isn’t in the best interests of first-time buyers. It would add unnecessary complexity for over 1.5 million and risks reintroducing challenges that the Lifetime ISA was designed to address.
More than a quarter of the LISA savers we surveyed are concerned they may not be able to transfer their LISA savings into any new product if desired. Meanwhile, one in ten are concerned that a shift in focus toward a new product could leave the needs of existing LISA savers overlooked in future.
You can read the full content of the letter, and our recommendations for futureproofing the Lifetime ISA, below.
Govt withdrawal charge may apply. ISA and tax rules apply. With S&S LISA, capital at risk.
Source: Moneybox survey, February 2026.