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<p>The Government is committed to supporting people of all incomes and at all stages
of life to save, and to making the aspiration of home ownership a reality for as many
households as possible.</p><p> </p><p>The Lifetime ISA is intended to support younger
people saving for their first home or for later life by offering a generous government
bonus of 25% on up to £4,000 of savings each year. These funds, including the government
bonus, can be used to purchase a first home up to the value of £450,000.</p><p> </p><p>The
Government remains of the view that the property price cap is set at an appropriate
level to support most first-time buyers across the UK while targeting households that
may find it most difficult to get onto the property ladder. The withdrawal charge
is needed to protect the LISA’s status as a long-term savings product. Reducing this
and would encourage the use of LISAs in ways for which they were not intended.</p><p>
</p><p>The Government does not undertake an assessment of the effectiveness of the
LISA by region, however the Government regularly publishes annual savings statistics,
which includes information on the LISA. (https://www.gov.uk/government/statistics/annual-savings-statistics-2022)</p><p>
</p><p>The Government will continue to keep all aspects of savings tax policy under
review and considers all representations made carefully, with any changes made as
part of the Budget process.</p>
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