The Chair of the UK Parliament’s Treasury Select Committee, Dame Meg Hillier, issued a statement following the Budget’s confirmation that the Government will develop a new product to replace the Lifetime ISA. The Budget Report states that a consultation will be launched next year on a new, simpler ISA designed to support first-time buyers purchasing a home, which will be offered in place of the Lifetime ISA once available. The Committee’s report on the Lifetime ISA found that its dual-purpose design could divert savers away from more suitable savings products. Hillier reiterated the Committee’s view that the Lifetime ISA is too complex and that combining saving for a home and retirement can lead to poor outcomes, arguing instead for separate, tailored policies to meet those distinct goals. The Treasury is expected to set out its proposals through the consultation process next year.
UK Parliament 2025-11-27
UK Parliament Treasury Select Committee Chair welcomes Budget plan to replace the Lifetime ISA with a simpler homebuyer ISA
The UK Parliament's Treasury Select Committee, led by Dame Meg Hillier, announced plans to replace the Lifetime ISA with a new, simpler ISA aimed at supporting first-time homebuyers. The Committee criticized the Lifetime ISA for its complexity and dual-purpose design, which may mislead savers. A consultation on the new ISA will be launched next year.