Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing the Lifetime ISA limit.

The Lifetime ISA is intended to support younger people saving for their first home or for later life by offering a generous government bonus on up to £4,000 of savings each year. These funds, including the government bonus, can be used to purchase a first home up to the value of £450,000.

The Government has no current plans to increase either the £4,000 Lifetime ISA subscription limit or the £450,000 property price cap.

The Government considers that the £450,000 price cap is suitable to support most first-time buyers across the UK, who typically purchase less expensive properties than other buyers, while ensuring sustainable public finances.

The Office for Budget Responsibility forecast that bonus payments will have an exchequer cost of over £3 billion between 2021 and 2027. The propertys price cap ensures that this significant investment of public money is more precisely targeted towards households that may find it more difficult to get onto the property ladder.

However, the Government continues to keep all aspects of savings tax policy under review.