It has been criticized by experts for years as being gimmicky, flawed, and a poor use of taxpayer money.
If you think the Lifetime Individual Savings Account needs a good new year makeover, you can now have your say by taking a call from a cross-party group of MPs to get their views.
Lifetime Isa (Lisa) was launched eight years ago to help people save for their first home or boost their retirement savings.
To those he works for, he is very generous. Anyone under 40 can open one and contribute up to £4,000 each tax year until they turn 50.
At the end of each tax year, your balance is topped up with a 25 per cent bonus from HMRC.
Review: Lifetime Isa was launched eight years ago to help people save for their first home or boost their retirement savings.
This is a substantial bonus of up to £1,000 a year, or £32,000 for someone who opened an account at age 18 and paid the maximum until they turn 50.
The money saved in a Lisa must be used to purchase a first property or withdrawn after age 60.
But over the years, glitches have emerged. The Government has so far ignored them, despite protests from individuals, financial firms, consumer groups and Money Mail. Yesterday’s call for views from the Treasury Committee is the first sign that this could change.
The biggest flaw is that the Lifetime Isa can only be used to buy a first property worth up to £450,000.
That may have been enough for most first-time buyers when it launched in 2016, but the limit has never been raised. If it had risen with inflation, it would now be worth around £600,000.
What’s more, those who decide to withdraw their savings from Lisa when they realize they cannot use them to purchase a property due to the price limit are fined 25 percent of the total value. This is equivalent to getting the full bonus back, plus another 6.25 percent.
The restrictions mean some Lisa holders have been charged more than £11,000 to withdraw their money.
Simply raising the property price cap in line with house price growth would make Lisa, which helped 56,900 first-time buyers onto the property ladder last year alone, fairer and more attractive.
You can share your views at committees.parliament.uk/call-for-evidence/3533. The deadline is Tuesday, February 4 at 5 p.m.
Check the best cash Isa rates in our savings tables