Closed petition Reduce the LISA withdrawal penalty.

Closed on 11 December 2022

As with when Statutory Instrument 2020 No. 506 gave effect to the temporary reduction in the withdrawal charge between 6 March 2020 and 5 April 2021 (as laid out on 14 May 2020), the Government should reduce the LISA withdrawal charge from 25% to 20%.

It is well established that we are living through a cost of living crisis. Last month, the Consumer Price Index hit 9%, the Consumer Prices Index with Housing hit 7.8%, while the Retail Price Index hit 11.1%. Statutory Instrument 2020 No. 506 was designed to support families and savers who faced furlough and a downturn in the economy in the wake of COVID. I would argue that this challenge to families on an economic scale is even more severe now. The LISA withdrawal penalty should, therefore, be reduced.