Milton Keynes South MP Iain Stewart has welcomed the creation of a brand new ISA announced in today’s budget.
The new ‘lifetime ISA’ will be for those aged under 40. Similar to the help-to-buy Isa, the Government will add £1 to every £4 a saver sets aside up to a limit of £4,000 worth of savings.
However, this model will allow young savers the choice and flexibility on how they use that ISA, putting it towards either their first home or keeping for when they retire.
Mr Stewart said, “This is a fantastic move for young savers in MK and across the Country. It will act as a real incentive to save for the future. I have long lobbied the Treasury to look at what more the Government could do to encourage savings to ensure people can have a more secure future, so I am delighted with today’s announcement.”
The budget also raised the amount you can save in a Tax-free ISA from £15,000 to £20,000.
In his speech the Chancellor of the Exchequer said it was “a budget that puts the next generation first.”