PETITIONOpenPetition · petition.parliament.uk

Guarantee a penalty-free transfer for LISA holders before its replacement

Government to formally confirm and legislate for a penalty-free transfer window for all current Lifetime ISA holders, allowing them to move their savings into the new ISA (as announced in 2025 budget)— or an alternative savings product — without incurring any withdrawal penalty by April 2028.

Last fetched 03 May 2026 · petition.parliament.uk

Signatures

signatures

Government response threshold (10,000) · 48/10,000

Debate threshold (100,000) · 48/100,000

Background

The Government has announced that the LISA is being replaced by a new type of ISA in 2028. We believe thousands of holders are feeling trapped by the £450,000 property cap, unchanged since 2017. The average London house price exceeds £551,000. Withdrawing triggers a 25% penalty — removing not just the government bonus but also 6.25% of savers' own money.

In our view these savers followed government guidance and did nothing wrong. We call for the Government to legislate for a penalty-free transfer window before 2028 so no saver loses their own money.