The average cumulative penalty for those charged more than once was £760. Some 3,970 savers incurred combined fines exceeding £2,000, and in the most severe cases, among the top 25 multiple-penalty cases, average combined charges per person exceeded £11,000. Plum’s release also provides a full breakdown: the largest cohort, 33,530 savers, lost between zero and £999 cumulatively, while 60 individuals each absorbed more than £8,000 in a single tax year.

“It is noteworthy that this exact data was requested by a parliamentary committee, but MPs were told it could not be produced in time,” said Rajan Lakhani, personal finance expert at Plum. “And yet a Freedom of Information request has surfaced it in a few short weeks.”

The withdrawal charge sits at 25% of the total bonus-inclusive withdrawal amount, which means savers can end up with less than their original deposit. A saver contributing £1,000 receives a 25% government bonus to bring their pot to £1,250, but a full cash withdrawal then incurs a penalty of £312.50, leaving them with £937.50. That structural quirk, where the penalty reclaims not only the bonus but also a slice of the saver’s own capital, has drawn sustained criticism from consumer groups and MPs alike.

The product’s property price cap adds a further constraint. At £450,000, a ceiling that has been frozen for nine years, the LISA is effectively inaccessible for purchases in London and the south-east, where average transaction values have long exceeded that threshold. Plum is calling on the government to raise the cap to approximately £600,000 in line with price growth, and to increase the annual subscription limit.

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