MPs call for reform of Lifetime ISAs over rules on withdrawals

SENIOR MPs have called for a significant overhaul of Lifetime ISAs, citing stringent rules on cash withdrawals that result in customers having less money than they initially deposited.

- MAURICIO ALENCAR

This, they argue, leads to poorer investment decisions by Britons, while the government allocates excessive spending for bonuses.

Chancellor Rachel Reeves is set to deliver her key Mansion House speech in two weeks' time, where she is anticipated to announce reforms to savings plans and bolster the UK's retail investment culture.

The Treasury Select Committee has identified serious issues with the Lifetime ISA, a scheme introduced under former Chancellor George Osborne.

They suggest that Britons might be better off investing in "higher risk but potentially higher return products such as bonds and equities."