Skipton calls on the Government to not follow the Treasury Select Committee’s recommendation to abolish the Lifetime ISA. Over 112,000 savers have opened a Cash Lifetime ISA with Skipton since 2017 with more than 9/10 Skipton Cash Lifetime ISA customers telling us they're using the product to save for their first home.
The Committee’s report cites complexity and limited take-up by customers as the reasons for its dramatic recommendation, which overlooks the hundreds of thousands of people already using the product to boost their savings.
Since 6 June 2017, over 112,000 people have opened a Cash Lifetime ISA with Skipton, producing a collective balance of over £500million. Almost nine in ten Skipton Lifetime ISA customers have told us they are using the account to save for their first home, with a much smaller proportion telling us they're using the product to save towards their retirement.
However, before applying we encourage customers to consider when they intend to retire, what other provisions they are making for their retirement, and whether a Cash Lifetime ISA is suitable for their savings goals.
In total, Skipton Lifetime ISA customers have so far received almost £98m in Government bonus – a vital cash boost to help those using their Lifetime ISA to buy their first home raise the ever-increasing deposits needed.
Kris Brewster, Skipton’s Head of Products, said:
“Originally, the government aspired to see 200,000 Lifetime ISA accounts opened in the first wave of activity. At Skipton, in just over one year, we have opened over 112,000 accounts. We believe the Lifetime ISA can make a real difference for people wanting to get on the housing ladder.
“There are several other providers offering stocks and shares Lifetime ISAs, along with recent announcements of other financial organisations confirming their intent to launch a Lifetime ISA. We believe the consumer response and uptake of this product, plus the positive intentions which the savers have, demonstrate the success of the account and indicate a real consumer need for savings products which support home ownership.
“Skipton’s Cash Lifetime ISA is answering the needs of the new generation of savers. The product’s 25% government bonus feature, for many first time buyers, provides the much needed cash injection to help them get onto the property ladder.”
The Treasury Select Committee's recommendation that the government abolishes the Lifetime ISA is just one of the many recommendations in a wider-ranging report. The government has not given any indication it intends to act on this recommendation and as a result we have no intention of closing our Lifetime ISAs nor will be ceasing to offer new Cashe Lifetime ISAs. Customers can continue to manage their Lifetime ISA as normal. If the government decided to act on the Treasy Select Committee's recommendation, we would take any appropriate action at the time.