Overview
- Official HMRC figures show withdrawal penalties totalled £102 million in 2024–25, up from £75 million the year before.
- A total of 129,200 savers were charged last year, with the average penalty coming to £789.75.
- The 25 largest charges averaged about £13,500, pointing to bigger LISA balances and more costly transactions.
- A 25% exit charge applies outside limited exemptions, and a frozen £450,000 property cap has disqualified some first‑home uses.
- There are roughly 1.6 million active accounts and about 87,000 property purchases used LISA funds last year, as MPs and industry voices urge clearer messaging or structural reform.