SAVERS have been warned that they could lose 25 percent of their cash
As the cost of living crisis continues to squeeze Britons everyday finances, many are turning to their LISAs to access much needed cash
According to HMRC figures, a record number of 77,500 people were hit with the early withdrawal charge in 2021-22 totalling £33million
This is an increase of nearly 30,000 people since 2020-21 and nearly a 70,000 increase since 2018-19
However, the £33million is £1million less than 2020-21 as many dipped into their savings during the COVID-19 pandemic
The Government announced the reduced rate in June 2020 and said savers could claim back the extra five percent charge they received
In April 2022, 8,900 LISA savers made unauthorised withdrawals worth over £14million.
The decision to take the charge back to 25 percent did face backlash at the time of the increase with a petition against the move