The Government is to push ahead with the launch of the Lifetime ISA in April 2017 – despite speculation it could have been axed after George Osborne was replaced as Chancellor.
The Lifetime ISA – or LISA, as it's known – will allow savers to put away up to £4,000 each year between the ages of 18 and 50 (though you have to be aged 18-39 to open one) and get a 25% bonus from the state on top of what they save at the end of each tax year.
It's a no-brainer for first-time buyers, who'll be able to put it towards a first home worth up to £450,000. You'll also be able to withdraw your cash and the bonus penalty-free once you reach 60, though whether or not it beats a pension for retirement savings is a tough call. See our Lifetime ISAs guide for full info.
There had been warnings that the LISA, which was seen as a pet project of Osborne, could have been scrapped after he was replaced as Chancellor by Philip Hammond following the Brexit referendum result in June.
The previous Pensions Minister Baroness Altmann had also created doubt after warning that the LISA could confuse the distinction between ISAs and pensions.
But the Treasury yesterday confirmed in the first draft of its Savings Bill that it intends the LISA to be available from April next year.