For more than a year, Moneybox has been meeting with key decision makers and telling the stories of our customers and our products. We’ve contributed to a number of HMRC and Treasury roundtables, as well as industry working groups on topics including ISA simplification and future-proofing the Lifetime ISA.

So, while there was lots of good news for UK households in today’s Spring Budget, it was also a missed opportunity to provide some much-needed support and reassurance to first-time buyers.

Without a doubt, getting that first foot on the property ladder has become increasingly difficult in recent years, with rising costs of living and increased affordability challenges. Throughout these challenges, the LISA has never been more popular and is an absolute lifeline for a whole generation of young savers who have been able to buy their first home far sooner than would otherwise have been possible, thanks to the fantastic 25% Government bonus the LISA offers.

However, LISA product rules have not been updated since it was first launched in 2017 and that’s why we have been campaigning for the government to future-proof this unique savings product, to ensure that it continues to meet the needs of the next generation of homeowners.

While the Chancellor didn’t deliver the changes we’d hoped for, we will continue to work closely with policymakers, campaigning to ensure LISA rules are urgently reviewed and the product continues to be fit for purpose for all those who need it most, into the future. 


How we’re campaigning for our customers

We’re continuing to meet with dozens of politicians, officials, and other key stakeholders, all with the aim of helping them better understand the saving, investing, retirement, and home-buying goals of our customers.

As the leading provider of Lifetime ISAs in the UK, we’ve supported more than half a million aspiring first-time buyers as they save their deposit, and we’ve helped nearly 70,000 people buy their first home far sooner than would otherwise have been possible. 

Every day, we see just how invaluable the Lifetime ISA has been to a whole generation of first-time buyers. In the last year alone, we’ve seen a 43% increase in the number of young savers opening a LISA to achieve the important life goal of buying their first home.

So, when it comes to the Lifetime ISA, we have been particularly clear: it’s a fantastic product that’s helped a new generation of aspiring first-time buyers save and invest their way towards a deposit.

It’s vital to build on this success, but future-proofing the Lifetime ISA should now be a real priority. Here’s how we think the government can achieve this:

  1. Ensuring that the Lifetime ISA remains fit for purpose for the next generation of aspiring homebuyers by committing to an annual review of the Lifetime ISA price cap in line with house price inflation.
  2. Introducing a penalty-free annual ‘Emergency Withdrawal Allowance’ so that Lifetime ISA savers are not penalised if they need their money in an emergency.

These changes would provide reassurance to those starting to save for a house deposit today and ensure the LISA continues to provide invaluable support to young people – encouraging them to plan for their future, develop positive saving habits, and build financial resilience.

We have always made the case for Moneybox customers in these areas, and we’ll continue to do so into the future. It’s worth acknowledging that we may not get exactly what we’re asking for, and we don’t expect any changes to apply to withdrawals made in the past.

With the Spring Budget on 6th March and an election on the horizon, Moneybox will continue to push policymakers to take these opportunities to continue to support the next generation of first-time buyers.


A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.