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Reeves Opens Consultation on LISA Replacement, Assures Current Accounts Stay Unchanged

The review will examine the £450,000 property cap alongside rules for existing savers.

Overview

  • The Treasury has begun a consultation to design a new product to replace the Lifetime ISA, according to Chancellor Rachel Reeves.
  • Reeves told Martin Lewis that nothing changes for people with money in a LISA while the consultation runs.
  • Officials will consider the £450,000 first‑home price limit and how existing LISA holders are treated, with no decision yet on whether balances can be ported to any new product.
  • Martin Lewis reported widespread concern among LISA savers and advised those expecting to buy under £450,000 within three to four years to keep using a LISA, while urging caution for likely purchases over the cap in high‑price areas.
  • Lewis said he will lobby for Help to Buy ISAs to be eligible for transfer into any eventual replacement product.