The Treasury has set the yearly contribution limit for its new tax-free children's savings scheme at £3,000. Junior ISAs, the replacement for Labour's Child Trust Funds (CTFs), will be introduced in the autumn but will not include any government contribution.
Annual limits for existing CTFs will be raised to the same £3,000 level, the Treasury confirmed last night. As with CTFs, any cash put into JISAs will be locked-in until a child reaches the age of 18.
Six million children will be eligible when JISAs are launched on 1 November, the Treasury says; 800,000 more will become eligible each year. The Government is also considering using JISAs to support saving for looked-after children.