MPs call for reform of Lifetime ISAs over rules on withdrawals

Chancellor Reeves is expected to announce reforms to savings plans at her key Mansion House speech in two weeks’ time

- MAURICIO ALENCAR

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.

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.