Warning savers using Lifetime Isas are at risk of making poor financial decisions
MPs highlighted that the dual objective often results in unsuitable investment choices and called for explicit warnings, particularly for those who might receive universal credit, as LISAs can affect benefit eligibility unlike other pension products.
The committee criticized the 25 per cent withdrawal charge for unauthorized access, noting it causes savers to lose not only the government bonus but also 6.25 per cent of their own contributions.
Data from 2023-24 showed nearly twice as many unauthorized withdrawals from LISAs compared to purchases of first homes, suggesting the product may not be functioning as intended.
Concerns were raised about the £3 billion projected cost of LISA bonuses to the Treasury, questioning if it is the best use of public funds and whether the product effectively targets those most in need.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
30 minutes ago
- Daily Mirror
PIP review update as 10 people could be consulting with Stephen Timms on future of benefit
Following the U-turn on welfare reform, Sir Stephen Timms' PIP review is now underway Following the scrapping of the controversial benefit eligibility changes from the Universal Credit and Personal Independence Payment Bill in July, several concessions were made to advance the welfare reform. Among these was the establishment of a fresh review examining the PIP assessment process, to be headed by the Minister of State for Disability and Social Security. Sir Stephen Timms has now provided insight into what this review might entail and how it could transform the benefit currently received by 3.7 million people nationwide. During an appearance on BBC's Access All podcast, the minister emphasised that unlike the previous reform attempt, this review isn't driven by any cost-reduction objectives. He explained: "The review exercise is not designed to deliver spending cuts. We'll have to operate within the current projections. This review is not intended to deliver cuts, I don't think some of the people we need to involve in the review wouldn't be (involved) if they thought that's what it was for." The MP also outlined the review's structure, placing disabled people and disability charities at the heart of his strategy, though within a limited consultation group. Sir Timms revealed he envisages fewer than a dozen people being directly engaged throughout the entire process. Although not yet confirmed, the MP outlined the summer plans: "What we're doing over the summer is planning in detail how that process will be taken forward. "What I envisage is a small group maybe 10 people who work very closely with me for the period of this review, they will have a lot of sway over the reform. We haven't yet worked out who. That's what we've got to reflect on over the summer." Sir Timms reflected on the last-minute compromises that allowed the Bill to pass through Parliament without definite amendments to Personal Independence Payments, describing it as "an example of democracy doing what it's supposed to do". He highlighted how Labour listened and changed its plans when people spoke up both in and outside of Parliament. Elaborating further, he said: "We listened to those concerns and as you know there was a proposal to limit eligibility for PIP to people who had four points on at least one of the daily living activities. "We decided not to go ahead with that instead to set up a full review of the PIP assessment which I will lead and co-produce with disabled people and disability organisations. "It means we are going to be taking a lead from disabled people and representatives in this work over the next year or so...I think that's a positive example that we need now to build on in taking forward this review." The initial welfare reform proposals were forecasted to slash about £5 billion from welfare expenditure by 2030. Official government statistics suggested that this would have prevented roughly 800,000 people from receiving the daily living component. Of this group, 370,000 would have forfeited their entitlement due to an award received, and 430,000 were projected to be future claimants. On average, these 800,000 disabled people would have seen a yearly reduction of £4,500 in support.
The Independent
an hour ago
- The Independent
Best home security system without subscription
Finding the best home security system without a subscription is a priority for many homeowners who don't want to be tied into ongoing fees after the initial purchase. Paying hundreds of pounds for a full home security system is often only part of the story, since many companies charge a monthly or annual fee to make use of every feature. These fees often cover the cost of cloud video storage, making your home security camera and video doorbell recordings available online. Some companies also lock extra functionality, like battery and cellular backup systems, or facial recognition powered by AI, behind a paywall. Security specialists like Simplisafe and Verisure use your monthly payment to fund professional monitoring services. But what if you don't want to pay a monthly subscription fee for your home security system? You'll miss out on some of the features mentioned above, but in return you get an alarm and home security system that works without any ongoing costs. There are several companies – including Eufy, Blink, Yale and TP-Link – that sell security systems with no monthly fee. They often make cloud storage available as an optional extra, but since video recordings are recorded locally, on the system itself, the subscription is exactly that: optional. Why pay for a home security subscription? Before we get to the options for best home security system without a subscription, it's worth reminding ourselves why some systems demand a monthly or annual fee to unlock full functionality. Ring is perhaps the best-known example, since even its simplest video doorbells and security cameras require a subscription to work properly. Without paying the fee, Ring's cameras and doorbells don't store any video footage. They still stream live to the Ring app – so you can see who's at the door when they press the button. But past events can't be accessed, so you won't be able to see what motion triggered your security camera while you were asleep. Ring's alarm kit also requires a subscription to enable its cellular and battery-backup systems, which keep the system online during a broadband outage or power cut. Other systems, like those from Simplisafe and Verisure, charge a fee for cloud video storage, as well as for access to their 24/7 professional monitoring services. This is where trained agents respond to your alarm, make contact with you, and, if necessary, call emergency services. Best home security systems without a subscription At the time of writing, in mid-2025, my favourite home security system without a subscription is made by Eufy. This is because Eufy's security cameras and video doorbells all record footage locally, either to the device's own integrated storage, a microSD card, or to the company's HomeBase, which acts as a central hub with expandable storage. Eufy's third-generation HomeBase also adds artificial intelligence to your compatible cameras and doorbell, which helps your security system recognise friendly faces (like your family members) and not alert you when they're spotted. Cloud storage is offered by Eufy, priced from £3.99 to £12.99 a month, but it's purely optional. All other features are included in the up-front price of the hardware. It's a similar case with Yale, whose security system also works without a subscription. The Yale Smart Alarm kit is simpler than some rivals, with a fairly basic smartphone app. But it comes from a trusted brand and, unlike most other systems, includes a wireless external siren for mounting on an outside wall. The system can be expanded with more sensors, motion detectors and cameras, and a key benefit is how the devices have a 1km (0.62 mile) wireless range – far greater than that of Yale's rivals. Like Eufy, Yale offers an optional subscription. Called Secure Plan, this costs £9 a month and adds cellular backup to the alarm system, where it uses the mobile phone network to stay online if your broadband goes off. The plan also unlocks a system where up to three emergency contacts receive an automated call when your alarm is triggered; although, they are not contacted by a human, as with professionally monitored systems. Subscribing opens up cloud storage for Yale's cameras, too, and enables an AI-powered system for differentiating between the motion of people, pets, vehicles and package deliveries. Granted, it's a good-value package (and you get six months' free with some purchases), but Yale's system uses local storage by default, so paying the fee isn't strictly necessary. Without it, you still have a fully functional security system. Blink is another security system that runs without a subscription, but here things work a little differently. Blink cameras on their own require a cloud storage subscription, since they don't save footage locally. However, this changes if you also buy the Blink Sync Module 2, which costs £40 (or is often bundled with cameras for a discount) and acts as a hub for connecting multiple cameras and a doorbell. It also has a microSD card slot, into which you can fit up to 256GB of local storage – and avoid paying the monthly fee for saving footage in the cloud. Blink plans start at just £2.50 a month and unlock extra features, like improved live streaming, video sharing, photo capture and cloud storage, but paying isn't a necessity like it is with Ring, the other Amazon-owned security company. The pros and cons of not paying for a home security subscription Pros: Avoid ongoing costs (which also often increase over time) You control your recordings; no uploading to third-party servers Reduced feeling of being locked into a product ecosystem Keeps things simple, avoiding superfluous features Cons: No professional monitoring Misses out on extra functionality Limits your hardware choices Removes cellular backup (where available) Is paying a home security system subscription worth it? This depends on your budget and your security requirements. If all you want is a video doorbell on the front door and a security camera keeping an eye on your garden or drive, you'll be fine installing the devices and having them save footage locally. This even works if you want to build a larger system – perhaps even a whole home security platform with cameras, door sensors, sirens and motion detectors – if your primary goal is to be alerted to motion, then have that motion recorded. In this scenario, a subscription for extra features might not be worth it to you, especially if you pick Eufy products that have their own on-board storage and artificial intelligence. Subscriptions become worthwhile if you want more than these basics. If you want cloud storage, then paying a subscription is the only option, since companies don't offer this service for free. Similarly, if you want cellular backup for your Yale system, AI smarts from Blink, video storage from Ring or professional monitoring from Simplisafe and Verisure, then a subscription could be worth it.
Times
2 hours ago
- Times
Is this a good time to buy shares in Diageo?
The latest annual results from Diageo give every impression of papering over the cracks, reporting flat sales and lower profits, having lost a chief executive. Nik Jhangiani, the interim chief executive, produced as much positive spin as he could, even on the supercharged $625 million cost-saving programme, but could not disguise a 'challenging' environment led by rapidly changing tastes that, in the US at least, extends to competition from cannabis drinks. Operating profits fell 27.8 per cent to $4.3 billion, but before $1.4 billion of exceptional items the reduction was trimmed to 0.7 per cent, giving a healthy 21.4 per cent profit margin. The main exceptional was the sale of the US-based Ciroc subsidiary. Net profit was 39.1 per cent lower at $2.5 billion, translated into a similar-sized drop in earnings per share to 105.9 cents. That has just about let Jhangiani pay a 62.98 cents final dividend to maintain the annual payout at 103.48 cents. The stock market's reaction was to mark the shares up 89p to £19.04, suggesting investors were expecting worse. We will not have a clear picture of where the group is heading until the board confirms Jhangiani in the top job or hands it to someone else, probably in October. Whoever it is will have to do something drastic to halt Diageo shares' steady three-year decline. As Jhangiani said: 'We have a lot to do.' The stop-gap plan is to cut costs even more, promote the group's current winning brands — Guinness stout, Don Julio tequila, Johnnie Walker scotch and the blackberry-infused Canadian whisky Crown Royal — and move as quickly as possible to catch the surprisingly rapid transition to low-alcohol drinks. While no one brand can on its own put a rocket under annual sales of $20.2 billion, Jhangiani dropped hints yesterday that his researchers are stretching every sinew to come up with an alcohol- and calorie-light successor to longstanding hits such as Baileys Irish Cream. They have taken 40 per cent of the calories out of that with Baileys Deliciously Light, but so far have been unable to do without the alcohol. Meanwhile, Jhangiani is desperately trying to get his head around the unpredictable leisure habits of Gen Z, who are influenced by health considerations, other claims on their wallets and less compulsion to hit the bars on a night out. 'We need to make sure our offerings are tailored to social occasions,' he said. A lot of that boils down to moderation, the catch-all management term for no and low alcohol. While Guinness 0.0 has become a banker brand, the picture is fuzzy elsewhere. Price resistance is turning into shrinkflation with smaller spirits bottles in Asian supermarkets. And that is also influencing the alcohol content of ready-made cocktails. Overhanging the price question is President Trump's tariff campaign, which is due to add 10 per cent to UK exports to the US and 15 per cent on dispatches from Europe. Diageo reckons this could cost it $200 million a year at the operating profit level, mainly affecting the group's lucrative spirits brands. However, Jhangiani hopes to be able to offset as much as half of that with clever pricing. The Scotch Whisky Association buttonholed Trump on his recent Scottish visit to point out that if production were moved to the US, the product would no longer qualify as scotch. While gin, vodka and other spirits are a different matter, it will take years and plenty of capital to build distilleries in the US. However, Diageo has made a start with a factory in Alabama. Demand in the US and China is expected to be weaker for some time, and Europe is fragmenting. The group's former southern Europe sales force is being broken up into separate Spanish, French and Italian units to cater for different tastes. That adds to the costs that Jhangiani is trying to squeeze, while protesting that this need not mean job cuts. 'We want more feet on the street,' he said. Despite Monday's positive stock market response, in the face of strong headwinds for the next few years the company does not yet have a workable recipe to take the shares back up to anywhere near their 2022 level. Maybe it will have to turn into a full-blown soft drinks company. Advice AvoidWhy Future unclear until the CEO issue is sorted out
