Lifetime Isa blow to savers under 40

MINISTERS have failed to convince banks to offer new Lifetime Isa accounts to young savers. The scheme, launched in April, was supposed to give the under-40s a 25 pc government top-up, worth up to £1,000 a year, on money they saved towards a first home or their retirement.

But the only provider offering a cash Lifetime Isa account — considered safer than an investment account for those saving towards a house deposit — is Skipton. No other major bank or building society has plans to launch a cash Lifetime Isa before 2018.

Jane Ellison, then the Financial Secretary to the Treasury, had told Money Mail in February that she expected more banks ‘joining over the course of the year’. AJ Bell, Hargreaves Lansdown, Nutmeg and Share Centre offer investment Lifetime Isa accounts, but these are seen as risky for short-term saving.

A Treasury spokesman says: ‘We anticipate that demand and the range of providers for the Lifetime Isa will increase as savers become even more familiar with it.’