<\/p>\n ![\"Recommended](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/822548aa-78cf-40f9-ba0a-ce48daf3d207.jpg\")
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Budget 2025: chancellor reduces cash Isa allowance to \u00a312k for under-65s<\/p>\n
<\/a><\/p>\n
\u201cOnce available, this new product will be offered in place of the lifetime Isa.\u201d<\/p>\n
It comes after the chancellor announced changes to the cash Isa which will see the allowance reduced to \u00a312,000 for under 65s.<\/p>\n
Rachael Griffin, tax and financial planning expert at Quilter, welcomed the changes to the \u201cconfused product\u201d. <\/p>\n
She said: \u201cAs it currently stands, the lifetime Isa has attempted to serve two distinct goals \u2013 saving for retirement and saving for a first home – but has failed to meet either effectively.<\/p>\n
\u201cWhile the 25 per cent government bonus has been undeniably popular, the product itself has carried serious flaws and the withdrawal penalty has punished savers at a time when they have faced significant financial strain.\u201d<\/p>\n
Many critics of the product have long been calling for the \u00a3450,000 house price cap, which has remained the same since it was launched, to be increased.<\/p>\n
Griffin added: \u201cFor many first-time buyers, the Lisa has provided genuine help, and a simplified offering should continue to meet the same need.<\/p>\n
\u201cHowever, there will be questions marks over how and if existing Lisa holders will be affected, and the government will need to ensure they are not disadvantaged.\u201d<\/p>\n
Carol Knight, CEO of The Investing and Savings Alliance, said the government \u201cmust protect the strengths of the Lisa\u201d. <\/p>\n
She said: \u201cThis is a moment for sensible reform of the Lifetime Isa, not a rush to scrap it.<\/p>\n
\u201cLisas have helped a generation of first-time buyers save for a deposit and, crucially, given many \u2013 particularly the self-employed \u2013 a simple, engaging way to build retirement savings.\u201d<\/p>\n
tara.o\u2019connor@ft.com<\/p>\n
What\u2019s your view?<\/p>\n
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com<\/p>\n","protected":false},"excerpt":{"rendered":"The government is set to consult on lifetime Isa reform in early 2026, with plans to scrap the…\n","protected":false},"author":2,"featured_media":284673,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,10477,59,12355,56,54,55],"class_list":["post-284672","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ft-adviser","tag-gb","tag-isas","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/284672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=284672"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/284672\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/284673"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=284672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=284672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=284672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}