MSE News: Government fails to act on Lifetime ISA fines

MSE_Petar

The Government has failed to commit to urgently addressing "serious holes" in Lifetime ISAs (LISAs). It follows calls from cross-party MPs for reform, as well as long-standing campaigning from MoneySavingExpert.com (MSE) founder Martin Lewis to scrap the scheme's fine on first-time buyers purchasing homes above the LISA's £450,000 cap.

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'Government fails to act on Lifetime ISA fines'

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MattMattMattUK

MSE_Petar said:

The Government has failed to commit to urgently addressing "serious holes" in Lifetime ISAs (LISAs). It follows calls from cross-party MPs for reform, as well as long-standing campaigning from MoneySavingExpert.com (MSE) founder Martin Lewis to scrap the scheme's fine on first-time buyers purchasing homes above the LISA's £450,000 cap.

Read the full story:
'Government fails to act on Lifetime ISA fines'

If you haven’t already, join the forum to reply.

Quite a hyperbolic article with an even more provocative clickbait headline, surely MSE should be better than that?

daveyjp

Fail to act (at this time). 

Government works on its own timetable, not ones set by campaigners.  The Budget is the time when any significant fiscal announcements are made and I'm sure ISAs of all flavours will be discussed by Treasury officials between now and November.

Mark_d

If you were genuinely a struggling first time buyer then you wouldn't need to buy a property in excess of £450k.  When I was a first time buyer, I could afford a mortgage but couldn't buy a property near my workplace because I didn't have the deposit - and it was difficult to save up for a deposit whilst renting.

What I did was to buy a property 45 minutes away down the train line.  My outgoings were the same as had I been able to buy near my workplace - but in this new location I had smaller mortgage but I also had commuting costs.

eskbanker

MattMattMattUK said:

MSE_Petar said:

The Government has failed to commit to urgently addressing "serious holes" in Lifetime ISAs (LISAs). It follows calls from cross-party MPs for reform, as well as long-standing campaigning from MoneySavingExpert.com (MSE) founder Martin Lewis to scrap the scheme's fine on first-time buyers purchasing homes above the LISA's £450,000 cap.

Read the full story:
'Government fails to act on Lifetime ISA fines'

If you haven’t already, join the forum to reply.

Quite a hyperbolic article with an even more provocative clickbait headline, surely MSE should be better than that?

To be fair, the headline reflects the title of the release put out today by the Treasury select committee, who are perhaps understandably unhappy that their recommendations have been ignored:

Government fails to action Committee’s recommendations on reform of Lifetime ISA - Committees - UK Parliament

The MSE article seems to reflect the tone and content of the government response published at:

Lifetime Individual Savings Account: Government Response

although it's perhaps unsurprising that MSE will incorporate the Martin Lewis angle too!

epm-84

Mark_d said:

If you were genuinely a struggling first time buyer 

Does anyone really think the Tories launched the Lifetime ISA (partly as replacement for the Help2Buy) to get supermarket checkout workers and binmen on the property ladder?

A few thousand extra in the banks of first time buyers helps boast the offers made for existing properties, so boasts the wealth of those who originally purchased property as an investment. But the (then) government could sell it as helping young people, rather than making the rich richer.

Middle_of_the_Road

epm-84 said:

Mark_d said:

If you were genuinely a struggling first time buyer 

Does anyone really think the Tories launched the Lifetime ISA (partly as replacement for the Help2Buy) to get supermarket checkout workers and binmen on the property ladder?

A few thousand extra in the banks of first time buyers helps boast the offers made for existing properties, so boasts the wealth of those who originally purchased property as an investment. But the (then) government could sell it as helping young people, rather than making the rich richer.

...and I thought I was cynical 🤔

eskbanker

Middle_of_the_Road said:

epm-84 said:

Mark_d said:

If you were genuinely a struggling first time buyer 

Does anyone really think the Tories launched the Lifetime ISA (partly as replacement for the Help2Buy) to get supermarket checkout workers and binmen on the property ladder?

A few thousand extra in the banks of first time buyers helps boast the offers made for existing properties, so boasts the wealth of those who originally purchased property as an investment. But the (then) government could sell it as helping young people, rather than making the rich richer.

...and I thought I was cynical 🤔

Is that something to boost about?

Middle_of_the_Road

😄
A keen eye you have, I didn't spat it...🧐

Kim_13

If you are buying as a couple, £450K is £225K each - some of which must be a mortgage. I don't think that equates to being rich and undeserving of help.

I have long thought there should be different regional limits - £450K in London will buy a one bed flat if that, but if you have £450K in the North I would suggest you probably aren't struggling.

epm-84

Kim_13 said:

If you are buying as a couple, £450K is £225K each - some of which must be a mortgage. I don't think that equates to being rich and undeserving of help.

I have long thought there should be different regional limits - £450K in London will buy a one bed flat if that, but if you have £450K in the North I would suggest you probably aren't struggling.

Although, with remote and hybrid working being normal now, and so many London based companies moving into flexible office space. Should it be the case that someone working remotely for a London company should face different rules if they're buying in Bristol compared to London? 

Don't forget the North West and Yorkshire include some expensive places to live too. Should someone working for the ICO in the posh town of Wilmslow have the right to live in the same town as their place of employment? OK they shouldn't need to go over £450k but they may need double the amount of someone buying a house in Wigan or Blackpool.