MSE News
Budget 2020: Junior ISA allowance to rise to £9,000 from April
The amount you can save in a junior ISA or Child Trust Fund will rise from £4,368 a year to £9,000 a year from April, the Treasury announced today.
Junior ISAs were introduced in November 2011 and replaced Child Trust Funds, which had been offered from 2002.
Both are tax-free savings accounts for under-18s. Money saved in one is locked away until the child's 18th birthday, when it converts into a standard ISA. At that point, the child owns the money and can spend it on what they want.
For more info on junior ISAs, including our top picks, see our Junior ISAs guide.
What's changing and why?
The Treasury announced today that from Monday 6 April the amount you'll be able to save tax-free in a junior ISA or Child Trust Fund will rise from £4,368 to £9,000 per tax year.
The Budget policy paper notes: "By saving towards their future, families can give children a significant financial asset when they reach adulthood – helping them into further education, training or work."
How will this affect me?
If you've already got a junior ISA or Child Trust Fund, you'll be able to save much more in it – tax-free – from Monday 6 April.
However, if you've got a Child Trust Fund, it's worth checking whether you should convert it into a junior ISA to up the rate.
If you don't have a junior ISA or Child Trust Fund, the increased allowance will likely only matter to you if your child currently pays tax on savings (this is vanishingly rare) or if you have a large lump sum which you want to lock away for your children.
Otherwise, it's still possible to get better rates with a normal children's savings account, with the additional bonus that the cash isn't locked away.
For more info on these accounts, including our top picks, see our Junior ISAs and Child Trust Funds guides.
MSE weekly email
FREE weekly MoneySaving email
For all the latest deals, guides and loopholes simply sign up today – it's spam-free!
Related Articles
-
Energy social tariff could save vulnerable households up to £1,500 a year – here's how it could work
8 March 2023![]()
A social tariff is the best way to stop millions of vulnerable people overpaying for energy, according to a new report from Citizens Advice published today. -
On heating oil or LPG but not got your £200 payment yet? You can now apply
8 March 2023![]( "781785529")
Around two million people across the UK use fuels such as heating oil, liquefied petroleum gas (LPG), coal or biomass to heat their homes. The majority should have received their £200 support payment in February from their electricity supplier, but if not, you can now apply for the payment. -
'Lifelong loans' to launch in 2025 to help those in England wanting to study, train or retrain later in life
7 March 2023![]()
People in England aged up to 60 who want to study, train or retrain will be able to access flexible student finance to help them do so from 2025, the Government has confirmed today. -
Mortgage prisoners: Government promises to consider proposals to free trapped borrowers
7 March 2023![]()
The Government has today confirmed that it will "carefully consider" the costed and practical proposals for freeing mortgage prisoners put forward in the recently published report by the LSE.
22 March 2023
-
Beat April price hikes
Martin's 11 must-do NOWs
-
Superfast fibre '£18/month'
Broadband hikes are coming
-
15GB data Sim for '£5/month'
Or '£9/month' for 100GB
-
Tesco Clubcard triple-up axed
3 months left to max gains
-
FREE £50 investment
It's back!
-
'Got a Power of Attorney?'
'It's probably more important than a will'
-
Important Budget briefing
Including Martin's video summary
-
Read the full email
For all the latest deals, guides and loopholes simply sign up today – it's spam-free!
-
Martin Lewis: Four urgent ways you may be due £1,000s in tax back – if you're married, had a PPI payout, wear a work uniform or even just pay tax
23 March 2023![]()
If you're married or in a civil partnership, have ever had a PPI payout, wear a uniform to work or pay any income tax, you could be due £100s or even £1,000s in tax back – but you'll need to check urgently. -
Bank of England increases base rate to 4.25% – what the rise means for your mortgage and savings
23 March 2023![]()
The Bank of England has increased the base rate from 4% to 4.25%. This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn. -
Broadband and mobile users to be hit with price hikes of up to 17.3% in April – here's what you need to know
23 March 2023![]()
Millions of BT, EE, O2, Plusnet, Shell, Sky, TalkTalk, Three, Virgin Media and Vodafone customers will be hit with price hikes of up to 17% this spring, on the back of a sharp increase in the cost of living. -
Worried about passport delays due to strikes? Here's what you need to know
22 March 2023![]()
More than one thousand Passport Office workers across the UK will walk out between 3 April and 5 May as part of strike action over pay, pensions, redundancy terms and job security. Below we explain your travel and compensation rights if your passport is delayed. -
Budget 2023: Childcare support to be boosted for children from nine months and for parents on universal credit – here's what you need to know
22 March 2023![]()
The announcements form a package of new measures designed to help parents, revealed by the Chancellor in today's Budget.
-
Martin Lewis: Is it time to ban unnecessary Christmas presents?
5 December 2022![]()
Update September 2017: It’s eight years since I first braved this subject, expecting a snowstorm of protest. Instead, year after year more join in, like Julia who recently tweeted me, “@MartinSLewis, finally took your advice and told my family I can’t afford Christmas presents. What a weight off my mind. Thank you.” One year even the Archbishop of... -
Martin Lewis: The one thing everyone aged over 66 needs to know
29 November 2022![]()
It is a national tragedy that getting on for a million pensioners, many of whom have been paying into the system for years, are missing out on a critical boost to their income. It's called pension credit, and this year it also means you get an extra £650 to help with energy bills.
.png.rendition.320.320.png)
Clever ways to calculate your finances
