The total value of withdrawal penalties from Lifetime Isas (Lisas) surged to £75.2 million in 2023-24, nearly a 40% increase from the previous year's £54.3 million. Approximately 56,900 individuals utilized their Lisas to purchase their first homes, while 99,650 made unauthorized withdrawals, incurring penalties. Experts, including Helen Morrissey from Hargreaves Lansdown, have called for reforms to address the punitive 25% exit fee, which not only negates the government bonus but also impacts savers' own funds. The Lisa was designed to assist young people in saving for homes and retirement, but the current structure deters usage due to the steep penalties. There are suggestions to reduce the exit penalty to 20% to better support savers, particularly those with variable incomes, like the self-employed. The significant rise in withdrawal fees emphasizes the urgent need for policy changes to enhance the effectiveness of Lisas as a savings tool.