The Skipton Building Society has called on the government to ignore the Treasury Select Committee’s recommendation to abolish the Lifetime Isa.
The mutual says that while the committee’s report cites complexity and limited take-up by customers as the reasons for its recommendation, it 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 the Skipton, which the building society says has produced a collective balance of over £500 million.
Almost nine in ten Skipton LISA members are using the account to save for their first home, with a small proportion using the product to provide for their retirement.
Customers who opened their account in the 2017-2018 tax year have received £98m in government bonus.
Kris Brewster (pictured), the 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 for our members. 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 LISAs, 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 is unique and, for many first time buyers, provides the much needed cash injection to help them get onto the property ladder.”