11 March 2020

Increase to Junior ISA limit an "empty gesture" for majority of parent savers

3 min read

Royal London logo
Becky O'Connor

Personal Finance Specialist

Share

In today’s Budget, the Chancellor announced an increase from £4,368 to £9,000 in the maximum amount parents or relatives can contribute to a child’s junior ISA in a year, tax-free.

Becky O’Connor, personal finance specialist at Royal London, said:

“Junior ISAs are a great way to give your children a head start in adult life with a pot of money behind them. In reality though, most people save far less into them than the maximum. According to HMRC figures, the average subscription in the 17/18 tax year was £994 per account*.”

“So raising the threshold is a bit of an empty gesture for all but the wealthiest ISA savers, who are the most likely to reach this maximum amount.”