Child Trust Funds will be scrapped entirely in January. A new tax-free savings account for children is to be introduced as some compensation for the loss of Child Trust Fund contributions.
The Junior Individual Savings Accounts (Isas) will lock in funds until the child reaches adulthood. But, unlike Child Trust Funds, there will be no government contributions into each child’s savings pot.
The new accounts will be similar to the adult version of the Individual Savings Account (Isa) in that there will be a cap on annual contributions, and investments can be made by cash or stocks and shares.
