https://birminghamdaily.co.uk/tags/withdrawalpenalty/Recent content in withdrawalpenalty on Birmingham DailyHugo -- gohugo.ioen-usThu, 25 Jun 2026 06:15:17 +0000https://birminghamdaily.co.uk/rachel-reeves-proposes-new-cash-withdrawal-rules-and-replaces-lifetime-isa-with-first-time-buyer-isa/Thu, 25 Jun 2026 06:15:17 +0000https://birminghamdaily.co.uk/rachel-reeves-proposes-new-cash-withdrawal-rules-and-replaces-lifetime-isa-with-first-time-buyer-isa/Rachel Reeves has announced plans to scrap the Lifetime ISA (LISA) due to widespread dissatisfaction over hefty withdrawal penalties that have burdened savers with charges exceeding £10,000. The Treasury is set to replace the LISA with a new product called the First Time Buyer ISA (FTB ISA), targeted exclusively at individuals over 18 who intend to purchase their first home. In a recent government consultation, officials acknowledged that the Lifetime ISA “is not working well for many” savers, primarily because of a 25% penalty on withdrawals made for unauthorized purposes or properties exceeding the price cap.