The government plans to launch a consultation in early 2026 regarding the implementation of a new, simpler Individual Savings Account (ISA) product.Martin Lewis has had his say(Image: inyourArea)

Martin Lewis has commented on a potential reform that could see the Lifetime ISA (LISA) replaced with a new product. Lewis confirmed that a consultation on implementing a new, simpler first-time buyers’ product will take place in early 2026. Crucially, the government has promised to address the £450,000 house price cap for existing LISA holders, who fear their savings vehicle will become a “dead product.”

Consultation on Replacement: The government plans to launch a consultation in early 2026 regarding the implementation of a new, simpler Individual Savings Account (ISA) product. This new product is intended to eventually replace the existing Lifetime ISA (LISA) for first-time buyers.LISA Holders’ Worry: Martin Lewis stated that LISA holders are “very worried” about the uncertainty and the possibility of their current savings product becoming a “dead product.” They fear being left in limbo if the rules change substantially without clear transfer pathways.Key Promise on House Cap: Lewis confirmed that he has been promised by a senior member of the government that the consultation will explicitly address increasing the £450,000 house price threshold . The cap has not been raised since the LISA launched in 2017, pricing many out of the market.Avoiding a “Dead Product”: The promise to review the threshold is intended to reassure existing savers that they “cannot be left with a dead product” that becomes unusable due to property price inflation. This is a vital concession for those who have been saving for years.Transferring Funds: Lewis also stated he will be lobbying for a solution that allows current LISA and Help To Buy ISA holders to transfer all their money into the new, improved product if it is introduced. This would provide a smooth transition and protect their existing government bonuses.Long-Term Process: Despite the launch of the consultation in early 2026, the new product will likely take longer to be officially launched and implemented. This signals that the changes, while significant, are part of a multi-year reform process.

[ Martin Lewis says LISA holders are ‘very worried’ about Rachel Reeves consultation ]