Around £5m of Government funding will be made available to help fund junior Isa saving for children in care.
Junior Isas were announced by the Government as a replacement for child trust funds in October and are expected to be available from the autumn. Unlike CTFs, junior Isas have no Government contribution, however the Government is making £5m available to contribute into junior Isas for children in care.
Speaking at Treasury questions in Parliament today, Chancellor George Osborne said further details on the wider scheme will be released next week.
He said: “I know these children face particular challenges and I can tell the house the Department of Education will work with others to make the necessary funding available to ensure we can provide the support they serve. The sum of money involved will be around £5m.”
Bernado’s and Action for Children proposed to the Government that these accounts should be used to support savings for “looked-after” children and Osborne said the Government will work with the charities to develop detailed proposals on how the scheme will work.
Looked-after children are those subject to care orders or who are voluntarily accommodated in the care system.
Conservative MP and all party parliamentary group on looked after children and care leavers chairman Edward Timpson said the proposal enjoyed strong cross bench consensus and welcomed the announcement.
Speaking to Money marketing after the debate Shadow Treasury minister David Hanson says: “I have been pushing to get a savings scheme in place for children in care so I am pleased the Government has listened to our calls and come forward with these proposals which we shall look at in detail.”
Labour MP for Wythenshawe and Sale East Paul Goggins said: “As ever the devil will be in the detail but I am certainly prepared to work with the charities and Treasury ministers to make sure we get a scheme which is effective.”