Today’s Finance Bill will see the Government set the maximum investment limit for junior Isas at £3,000, according to reports.
Junior Isas are set to launch on November 1, 2011, and are designed to replace Child Trust Funds.
Investments in CTFs were limited to £1,200, but this will now be aligned with the £3,000 Isa limit. Junior Isas will have no government contributions into each child’s saving pots.
Junior Isas will have the money invested in them “locked in” until a child is 18, by which point it will become an adult Isa.
The Treasury says that around six million children will be eligible for Junior Isas at launch. Consultation on the draft regulations is set to continue until May.