But minister insists: We’ll make it work

WE ALL know that saving makes sense, but sometimes it can be hard to do. There are often specific things we aspire to save for, and for many younger people, that’s about getting a foot on the property ladder.

But what if they also want to take the long view, looking to their aspirations for later life?

In 2015, the Government carried out some research, and found younger adults wanted more flexibility in how they save for the long term, particularly since many today face a stark choice between saving for a first home or supplementing their income in later years.

So that is why, from the new tax year, the Government will help younger adults to save for their first home, or for later life, when we launch the new Lifetime Isa. Adults under 40 will be able to use the Lifetime Isa when saving up to £4,000 a year to receive a generous 25 pc top-up from the Government.

The money saved can be put towards a first home, or accessed when they reach 60 — increasing choice for savers.

It will also help those who are self-employed to save for the long term, which is important when they are unable to benefit from a workplace pension with employer contributions.

Instead, they will benefit from extra cash in the form of a bonus from the Government.

We want to make sure savers can start to benefit from the new Lifetime Isa as soon as possible, by pushing ahead with the necessary legislation and working closely with indus- try and the regulator. This means that banks, building societies and other financial providers can start signing up. We know the number of providers of the Lifetime Isa may be small to start with, but we expect a number of stocks and shares providers to be signed up from the outset, so people can open accounts from April 6, and the first bonuses will be paid by April 2018.

We anticipate the market will continue to grow, with more providers — including cash ones — joining over the year as they put their systems in place and develop their products.

But, as all savers know, even if you start small, the rewards will be realised over time.

I believe the Lifetime Isa will be a welcome addition to the UK savings family.