Draft Individual Savings Account (Amendment No.2) Regulations 2017

Rachael Maskell Excerpts

Wednesday 15th March 2017 General Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Evans.

I want to make a number of points, particularly in relation to the age limits in the draft regulations. The Government forever talk about longevity and the fact that people are living longer, so it is clear that people will have longer to save into a lifetime ISA. Putting an upper age limit on those who wish to take up the product will cause difficulties. The explanatory memorandum advises that some will be signposted towards the help to buy ISA, rather than be allowed to take advantage of the lifetime ISA.

I raise that issue because the age at which people are able to access the property market is increasing. People are really struggling and often have to wait until they are in their 40s or 50s before they have that opportunity to enter the market. The lifetime ISA offers a greater bonus up to the age of 50, but it is not possible for anyone over the age of 40 to access the product. The product enables people to save up to £4,000 a year, whereas the figure for the help to buy ISA is £2,400. That means that older people who were not able to save earlier in life will be disadvantaged by not being able to access it.

Although the cap on the lifetime ISA could remain universal, I see no reason why lifetime ISAs could not be open to people from across all age groups. Why discriminate against those aged between 40 and 50 who have worked hard and saved enough to make putting money into a lifetime ISA worthwhile? Why are they being denied that opportunity? I would very much like the Minister to address that issue. Will she review the 40-year age bar for people to access the product?