In a significant move for aspiring homeowners, the government has used its Autumn Budget to signal the end of the Lifetime ISA. Chancellor Rachel Reeves confirmed plans to consult on a new, simpler savings product designed specifically for first-time buyers.
What changes are coming for the Lifetime ISA?
The Treasury will publish a consultation in early 2026 to explore options for replacing or modifying the existing Lifetime ISA scheme. The current system, which allows savers to deposit up to £4,000 annually and receive a 25% government bonus, has been a popular route onto the property ladder for millions.
According to the official Budget paper, the government's goal is to create a more straightforward product. Once this new ISA is available, it will be offered to savers in place of the Lifetime ISA.
Industry reaction and calls for sensible reform
The announcement has prompted a response from industry leaders. Carol Knight, CEO of TISA, urged the government to proceed with caution. She stated that this should be a "moment for sensible reform of the Lifetime ISA, not a rush to scrap it."
Knight emphasised the product's success, noting it has "helped a generation of first-time buyers save for a deposit" and provided a simple way for the self-employed to build retirement savings. Her key message was a call to protect the strengths of the LISA and ensure fair treatment for existing savers.
Help to Save scheme made permanent
Alongside the LISA news, the Budget contained another key measure for savers. The government confirmed it will make the Help to Save scheme permanent.
Furthermore, from April 2028, eligibility for the scheme will be expanded to include all Universal Credit claimants who receive the child element, the caring element, or both.
