# LISA holders should not panic over proposed changes

By Katie Horne — 2026-06-24

Katie Horne, Savings Expert at Flagstone, said: “The Lifetime ISA has faced criticism since its launch almost 10 years ago. While its tax-free status and 25% government top-ups were huge advantages for savers, the penalties for early withdrawal have been a millstone around the LISA’s neck since the outset.

“With its consultation paper on the proposed launch of an FTB ISA specifically for first-time buyers, it seems the Treasury is acknowledging that the structure of the LISA means it is not working for many people. It is encouraging to see that rather than shutting down the LISA entirely, the Treasury remains committed to helping first-time buyers access the sort of savings help they need to make their dream home purchase a reality.

“While its structure was flawed, the concept of the LISA was an admirable one. Creating good savings behaviours from an early age is critical to later-life financial independence and stability. A key to good savings habits is simple, accessible savings products – hopefully the new FTBISA will encourage this. ”

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