Petition Permanently reduce the Lifetime ISA (LISA) withdrawal penalty from 25% to 20%.
The LISA savings product is designed to encourage people to save for the future by offering a government bonus. Those who withdraw early lose the bonus and pay an additional penalty of 6.25%. This penalty unfairly penalises people who need to be able to access their savings unexpectedly.
It's likely the economic outlook will remain uncertain for many years to come. Permanently reducing the penalty now would give people confidence to save and invest for the future when they may have some concerns about their employment. If changing personal circumstances result in unplanned access to their LISA savings, savers would only incur the loss of the Government bonus and no further penalty.
Government will respond
Government responds to all petitions that get more than 10,000 signatures
Waiting for 12 days for a government response
At 100,000 signatures...
At 100,000 signatures, this petition will be considered for debate in Parliament