Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of increasing the age limit for a Lifetime ISA, in the context of people saving to buy a home.

The Lifetime ISA (LISA) was designed as a long-term savings product intended to support younger people saving for their first home, or for later life. Since April 2017, adults under 40 have been able to open a LISA and save up to £4,000 each year until they reach 50. The government provides a 25% bonus on all LISA contributions within these limits.

The government considers that those over the age of 40 are less likely to be first time buyers, and the Government's consultation on pensions tax relief in 2015 showed that younger people were in particular need of alternative support to save.

However, individuals aged 40 or over who have not previously opened a LISA are still able to save into another ISA type, benefitting from the annual subscription limit to £20,000.

The Government has no current plans to amend the terms of the LISA but keeps all aspects of savings tax policy under review.