HMRC data reveals that nearly one million children saw no contributions to their Junior ISAs (JISAs) in 2023–24. While more families open these accounts to secure their children’s futures, a rising number struggle to make regular deposits.
Rising Concerns Over Family Savings Pressures
This trend highlights intense financial strains on households. Around two in five JISAs remain inactive without contributions in a year, signaling that daily expenses often override long-term saving goals.
Harriet Guevara, chief savings officer at Nottingham Building Society, warns: “Junior ISAs aim to give children a financial head start, but these figures indicate many accounts sit empty—a clear warning light. Child savings must become accessible to all families, prioritizing small, regular contributions and true financial resilience over large sums alone.”
Four Essential Reforms for the Chancellor
Guevara calls on Chancellor Rachel Reeves and industry leaders to act decisively. Key recommendations include:
- Clearer guidance and targeted prompts during life events like births, childcare shifts, and school starts.
- Product innovations that simplify small, frequent contributions.
- Collaboration between policymakers and the sector on practical support measures.
- Reexamining elements of the former Child Trust Fund, such as the government’s £250 minimum contribution per child, to boost balances.
Savings Market Snapshot
Savers now face the widest array of accounts in at least 19 years, with 2,394 deals—including cash ISAs—available in February. However, average rates on these products continue to decline, according to financial data from Moneyfacts.
