MSE News

Spring Budget 2024: No change to Lifetime ISAs in blow to Martin and MSE's campaign – but a shake-up could still be on the table

In a blow to first-time buyers – and to MoneySavingExpert.com and its founder Martin Lewis's campaign – there were no changes to the rules on Lifetime ISAs (LISAs) announced in today's Spring Budget. However, while the news is "disappointing", Martin says a shake-up "isn't off the table".  

In an interview with Martin in January, the Chancellor had said he considered himself "properly lobbied" on LISAs, and politics news organisation Politico had reported that the Spring Budget would include changes to LISA rules. Despite this, there were no changes today.

However, in a briefing given to Martin, the Chancellor Jeremy Hunt said he still "wants to reform" LISAs but that he needs to wait "until property prices are definitely rising". 

You can read what the Chancellor said, as well as Martin's thoughts on it, in full below: 

Lifetime ISAs are still a powerful product for many – but reform is needed

LISAs are a powerful product for many aged 18 to 39, as they can get a 25% Government boost when when buying their first home or, much less popularly, when saving for retirement. However, we've long warned that they could become not only a dead duck product, but one with a poisoned beak for many who were encouraged by the Government to open them.

That's because the LISA property price limit of £450,000 hasn't increased in line with average house prices, which have risen by 30% since LISAs launched in April 2017. On top of that, savers are fined 6.25% of their OWN money to withdraw funds to buy homes over the limit. You can read Martin's full letter to the Chancellor, which he sent earlier this year, for more on this. 

Our full Lifetime ISAs guide contains further info on how they work, as well as our current best buys for those whom a LISA still works for.

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