Many people have savings locked away in a Lifetime ISA saving for their first homes and retirement. However, currently there is a 25% penalty for any withdrawals other than for those purposes. Freezing this penalty would help people to withdraw money to deal with the consequences of the Coronavirus
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The government is making lots of changes to help with the virus, but this would be a relatively easy move to help people. People shouldn't be penalised for withdrawing funds due to an unprecedented emergency.