The Lifetime ISA has delivered a £1bn net boost to the Treasury since 2021, according to new independent analysis by CBI Economics, the economic consultancy arm of the Confederation of British Industry (CBI).
The research, commissioned by Moneybox – the digital wealth manager helping over 1.5 million people across the UK save, invest, and plan for their future – confirms that the scheme has been fiscally positive in every year since 2021/22, with revenues consistently outweighing the cost of government bonuses. For every £1 spent, the government has recouped £1.45 in fiscal revenue, demonstrating that the Lifetime ISA offers clear value for money.
Alongside its fiscal return, the scheme has generated £9.4bn in additional Gross Value Added (GVA) for the UK economy and supported a cumulative total of more than 110,000 jobs since 2019/20. These economic impacts have grown significantly as the scheme has matured – rising from £640 million in 2019/20 to almost £3 billion by 2024/25, more than quadrupling over five years.
Cecilia Mourain, Chief Homebuying & Savings Officer, Moneybox comments:
“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.”
The report also highlights the Lifetime ISA’s social impact. Analysis of English Housing Survey data alongside Moneybox’s own records shows that over half of users were able to buy a home earlier, typically bringing their purchase forward by five years. Moneybox’s data further reveals that savers earning £30,000–£40,000 a year account for the largest share of LISA deposits, contributing over £600 million in 2024/25 alone. This group sits at the heart of the affordability challenge, demonstrating how LISAs are directly helping those who might otherwise struggle to get onto the property ladder.
Latest HMRC figures also underline the scheme’s growing reach, with £1.3bn withdrawn for house purchases in 2023/24, and 87,250 people using the product to buy their first home in the year alone.
Beyond homeownership, LISAs are also supporting long-term financial resilience and retirement saving. According to Moneybox data, 81% of users say the product has improved their saving behaviour, while 84% feel more financially secure as a result of using it.
CBI Economics’ analysis highlights how these benefits flow back to the Treasury through Stamp Duty Land Tax (SDLT), mortgage interest taxation, housing expenditure, new build activity, land registry fees, and withdrawal penalties. Notably, the withdrawal penalty fee (which Moneybox has campaigned the government to reduce) contributes just 8.3% of these revenues. Jobs supported through the scheme span a wide range of industries, including construction trades, legal services, financial services, and supply chain activity – with further gains as wages are re-spent in the wider economy.
Looking ahead, the Lifetime ISA is projected to generate a cumulative £4bn fiscal contribution by 2040, reinforcing its role as a policy success that empowers young people to save for their first home, build habits for long-term retirement planning, strengthens the housing market, and delivers tangible benefits for public finances.
The analysis was conducted using CBI Economics’ input-output modelling framework and official data sources to assess the fiscal and economic impacts of the LISA programme.
