The study, commissioned by Moneybox, found that the scheme has been fiscally positive in every year since 2021/22, with revenues exceeding the cost of government bonuses. For every £1 spent on the Lifetime ISA, the Treasury recoups £1.45 in fiscal revenue.
The analysis also estimates that the scheme has added £9.4bn in Gross Value Added to the UK economy and supported more than 110,000 jobs since 2019/20. The economic impact has increased significantly as the scheme has matured, rising from £640m in 2019/20 to almost £3bn in 2024/25.
The report also highlights the social impact of the Lifetime ISA. Analysis combining English Housing Survey data with Moneybox’s own records found that over half of users bought a home earlier than they otherwise could have, typically bringing forward their purchase by five years.
Moneybox data shows that savers earning £30,000 to £40,000 a year make up the largest share of Lifetime ISA deposits, contributing over £600m in 2024/25. According to HMRC figures, £1.3bn was withdrawn for home purchases in 2023/24, with 87,250 people using the product to buy their first home.
Beyond homeownership, LISAs are also supporting long-term financial resilience. Eighty-one per cent of users said the product had improved their saving behaviour, and 84% reported feeling more financially secure as a result.
CBI Economics’ analysis found that fiscal revenues are generated through Stamp Duty Land Tax, mortgage interest taxation, housing expenditure, land registry fees, and withdrawal penalties. Withdrawal penalties accounted for just 8.3% of the total revenue.
The Lifetime ISA is projected to generate a cumulative £4bn by 2040. CBI Economics based its findings on official data sources and input-output modelling to assess both the fiscal and economic impacts of the scheme.
Cecilia Mourain, chief homebuying and savings officer at Moneybox, said: “As the UK’s leading Lifetime ISA provider, we see first-hand the difference this product makes. It helps young people across the UK save for their future, build financial confidence, and achieve life goals that might otherwise feel out of reach.
“This analysis unequivocally demonstrates the value and impact of this product. With a few considered measures to future-proof it for the next generation, LISAs can go even further in unlocking financial opportunity and resilience for generations to come.”
