Emma RadmoreThe Treasury Committee is asking for evidence on whether the LISA is still an appropriate financial product. The product was introduced in 2016, and has as its main benefit enabling under 40s to contribute up to £4,000 per year until they turn 50, and receive a 25% top up bonus from HMRC every year. They can withdraw money before they are 60 only if terminally ill or to buy their first home. The Committee is looking at whether it is still appropriate to use a product for both house purchase and pension saving and how well consumers transition between using it to buy and house and then saving for their pension. It also welcomes views on whether, if the product remains, the limits, withdrawal penalties and house price caps should be reviewed, and whether its access should be restricted so only those without a workplace pension can invest.
The Committee asks for views by 4 February.