Debates between John Glen and Justin Madders during the 2017-2019 Parliament

Oral Answers to Questions

Debate between John Glen and Justin Madders
Tuesday 22nd May 2018

(6 years, 7 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Justin Madders Portrait Justin Madders (Ellesmere Port and Neston) (Lab)
- Hansard - - - Excerpts

5. How many people have paid a 25% withdrawal charge to use their lifetime ISA savings since that scheme was established.

John Glen Portrait The Economic Secretary to the Treasury (John Glen)
- Hansard - -

In the first financial year, 2017-18, there was no unauthorised withdrawal charge in place. The data for 2018-19 is obviously not yet known, but HMRC will publish it when it is available.

Justin Madders Portrait Justin Madders
- Hansard - - - Excerpts

Will the Minister look at the effect of the withdrawal charge more closely? A first-time buyer has told me that he has found a home that suits his needs, but because his lifetime ISA is less than a year old, he will not only lose his Government bonus but have to pay a £375 penalty charge back to the Government out of his own money. Why are aspiring homeowners being penalised in this way?

John Glen Portrait John Glen
- Hansard - -

I am of course happy to look at that case. Following my appearance at the Treasury Select Committee, I asked my officials to look at the guidance on the website, as I am anxious not to put misleading advice on there. The LISA is available for long-term savings. That was the scheme’s objective when it was set up.