Quilter says more Lifetime ISA savers pay penalties than use accounts to buy homes in 2025-26

By Public Technologies
  • Quilter flagged 154,100 Lifetime ISA unauthorized withdrawals in 2025-26, triggering nearly GBP 119 million of charges.
  • Home-purchase use hit a record 99,750, with more than GBP 1.5 billion withdrawn for first-home deposits.
  • Commentary called the penalty structure a product failure, urging reforms that reclaim bonuses without cutting savers’ own money.
  • Stocks and Shares ISA subscriptions rose almost 20%, but Cash ISA inflows dominated, up GBP 26.1 billion versus GBP 6.1 billion.
  • Quilter cautioned a planned April 2027 cut in the under-65 Cash ISA allowance to GBP 12,000 may not shift entrenched cash preferences.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Quilter plc published the original content used to generate this news brief on September 16, 2026, and is solely responsible for the information contained therein.

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