Asked by: Sojan Joseph (Labour - Ashford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of increasing the Lifetime ISA property price limit above the current £450,000 threshold for first‑time buyers.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the Lifetime ISA (Individual Savings Accounts) property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.
As of 2024/25 there were over 1.3 million LISA accounts open and, since its introduction in 2017, the LISA has helped 314,600 people purchase their first property.
The Government keeps all aspects of savings tax policy under review.
Asked by: Sojan Joseph (Labour - Ashford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reviewing pension abatement rules on (a) public sector pensions and (b) re-employment earnings for public sector employees.
Answered by Darren Jones - Minister for Intergovernmental Relations
Pension abatement rules formed part of the overall design of most legacy Public Service Pension Schemes. These rules worked as part of an overall package to safeguard against undesirable practices and ensure propriety and value for money. Reformed schemes were introduced in 2014/15 and do not contain abatement provisions.
The government has no plans to review the abatement rules. It is generally not appropriate to retrospectively improve the terms of public service pensions, as this would place costs on current employers for benefits that were not envisaged at the time such pensions were accrued.