- For every £1 spent, the Treasury recoups £1.45
- Economic impact has more than quadrupled in five years
- Over 110,000 jobs supported since 2019/20 and £9.4bn added to the economy
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Latest HMRC figures also underline the scheme’s growing reach, with £1.3bn withdrawn for house purchases in 2023/24, and 87,250 people using the product to buy their first home in the year alone.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.
ENDS
The full report is available here.
About CBI Economics:
CBI Economics is the economic consultancy arm of the Confederation of British Industry (CBI), delivering independent, data-driven research and analysis to a wide range of public and private sector clients. Our work is grounded in robust economic methodologies and tailored to meet the specific objectives of each client project.
This analysis was produced by CBI Economics on a commissioned basis. The analysis, findings and recommendations presented herein are those of CBI Economics and do not necessarily reflect the views or policy positions of the CBI or its members. CBI Economics operates independently from the CBI’s member-led policy teams, and its consultancy work is not influenced by CBI membership or advocacy priorities
About Moneybox:
Moneybox is an award-winning wealth management platform on a mission to give everyone the means to get more out of life. Launched in 2016 by Ben Stanway and Charlie Mortimer, Moneybox has grown rapidly and now supports a community of over 1.5 million customers with more than £16 billion in assetsAn asset is anything that holds value and which can be bought and sold freely. under administration. The platform brings together saving, investing, home-buying, and retirement services—alongside powerful tools and educational content—to help people build wealth throughout life, no matter their starting point.
Moneybox is a Which? Recommended Savings Provider 2024. Has been voted ‘Best First-Time Buyer App’ at the What Mortgage Awards three years running (2022, 2023, and 2024) and won ‘Best Broker for Digital Innovation’ at the Mortgage Strategy Awards 2023.
Contacts:
Joanne Leahy, Head of PR
joanne.leahy@moneyboxapp.com
Jake Hudson, Senior PR Manager
jake.hudson@moneyboxapp.com
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