Savers may be unable to open Lifetime Isas this year because the Treasury has failed to convince banks to offer the accounts.

In an embarrassing admission, officials told Money Mail that not a single firm is on track to launch the Government's new savings deal for the under 40s in April.

Skipton Building Society was thought to be poised to offer the account but has confirmed to Money Mail that it won't be ready.

Not a single firm is on track to launch the Government's new savings deal for the under 40s in April

Just two firms, Hargreaves Lansdown and Nutmeg, will offer the investment version of the accounts from April.

But these are useless for savers trying to get on the property ladder as they're considered too risky for house deposit money.

Now experts fear the whole scheme could be branded a flop, putting its future in doubt and derailing efforts to solve the pension and housing crisis among young workers.

The Government's plan had been that from April, young workers could open Lifetime Isas and get a 25 per cent top-up on anything they saved.

They could then use the money for a first home, or withdraw it for retirement after the age of 60.

Former Chancellor George Osborne promised that under 40s could put up to £4,000 a year in an account with a bank, building society or investment firm, and qualify for up to £1,000 a year in top-ups until they reach the age of 50.

But in an article for Money Mail today, Jane Ellison, Financial Secretary to the Treasury, concedes that 'the number of providers of the Lifetime Isa may be small to start with'.

She says: 'We anticipate that the market will continue to grow, with more providers, including cash providers, joining over the course of the year as they put their systems in place and develop their products.'

However, Lloyds, Santander, Nationwide and Yorkshire Building Society all told Money Mail they have no plans to launch an account in the coming year.

Barclays, HSBC, Royal Bank of Scotland and Skipton Building Society say they are waiting for the final rules from the Financial Conduct Authority (FCA).

Insiders at banks and building societies say they are afraid of being dragged into a mis-selling scandal.

The Lifetime Isa was billed as a flexible retirement plan for those torn between saving for later life and getting a foot on the property ladder.

It is more generous than the Help To Buy Isa, launched in 2015, which has a maximum bonus of £3,000.

The Lifetime Isa gives you a bonus of up to £32,000 — and the money doesn't have to go towards a property.

However, savers who don't buy a house are penalised from withdrawing the cash before their 60th birthday.

'WE'LL MAKE SAVING A SUCCESS' Confidence: Jane Ellison, MP By Jane Ellison, MP Financial Secretary to the Treasury We all know that saving makes sense, but sometimes it can be hard to do. There are often specific things we aspire to save for, and for many younger people, that’s about getting a foot on the property ladder. But what if they also want to take the long view, looking to their aspirations for later life? In 2015, the Government carried out some research, and found younger adults wanted more flexibility in how they save for the long term, particularly since many today face a stark choice between saving for a first home or supplementing their income in later years. So that is why, from the new tax year, the Government will help younger adults to save for their first home, or for later life, when we launch the new Lifetime Isa. Adults under 40 will be able to use the Lifetime Isa when saving up to £4,000 a year to receive a generous 25 pc top-up from the Government. The money saved can be put towards a first home, or accessed when they reach 60 — increasing choice for savers. It will also help those who are self-employed to save for the long term, which is important when they are unable to benefit from a workplace pension with employer contributions. Instead, they will benefit from extra cash in the form of a bonus from the Government. We want to make sure savers can start to benefit from the new Lifetime Isa as soon as possible, by pushing ahead with the necessary legislation and working closely with industry and the regulator. This means that banks, building societies and other financial providers can start signing up. We know the number of providers of the Lifetime Isa may be small to start with, but we expect a number of stocks and shares providers to be signed up from the outset, so people can open accounts from April 6, and the first bonuses will be paid by April 2018. We anticipate the market will continue to grow, with more providers — including cash providers — joining over the course of the year as they put their systems in place and develop their products. But, as all savers know, even if you start small, the rewards will be realised over time. I believe the Lifetime Isa will be a welcome new addition to the UK savings family.

The Treasury will claw back 25 per cent of anything they take from their fund — retrieving the bonus amount plus a 5 per cent exit fee.

And experts say many savers who leave the cash until retirement would have been better off with a company pension.

This is because pensions offer tax relief up to 45 per cent, depending on your income, along with contributions from your employer.

Calculations show that young savers who choose a Lifetime Isa over a pension could be £419,435 worse off by retirement.

Baroness Ros Altmann, the former pensions minister, says: 'I'm not surprised providers are frightened of offering accounts.

'There is a huge mis-selling and mis-buying risk, as the burden of deciding whether it is a good option for most people is enormous. It's a complex and expensive product and my fear is that it could be sold carelessly.'

An industry source told Money Mail that the City watchdog is 'treading a tightrope' between trying to please the Treasury and making sure customers don't sign up for the wrong deal.

He even questioned whether the FCA would have allowed the product to be offered if it had been designed by a bank or building society, rather than civil servants.

The source said: 'The Lifetime Isa is trying to do two very different things: investing for later life — which normally involves the stock market — and saving a deposit, which is normally about cash. The two things don't fit well together.'

Justin Modray, director of Candid Financial Advice, says: 'Lifetime Isas are almost a no-brainer for those saving to buy their first home, but should really carry a risk warning if you're saving for retirement.'

Martin Lewis, founder of Money Saving Expert, has told MPs that savers should be forced to take advice before they sign up.

Out of the main investment providers, Fidelity and AJ Bell say they will launch Lifetime Isas within the next year, and Chelsea Financial Services and Tilney hope to do so, too.

The lack of cash accounts also threatens to derail house purchases for savers with Help To Buy Isas.

With these accounts, which will shut to new customers in 2019, you get the bonus when you exchange contracts on a house.

By contrast, Lifetime Isa bonuses are paid every year, meaning you earn extra interest as you go.

Additionally, the Lifetime Isa can be used to buy homes worth up to £450,000 anywhere, whereas the Help To Buy limit is £250,000, rising only to £450,000 in London.

Savers only have until April 2018 to move any cash they have already saved in a Help To Buy Isa into a Lifetime Isa. After this, the money will count towards their annual allowance.

l.milner@dailymail.co.uk