Budget 2013: Govt to consult on switching CTFs to Junior ISAs

The Government will consult on options for transferring savings held in child trust funds (CTFs) into Junior ISAs.

The move, announced today by Chancellor George Osborne in his fourth Budget, will offer a lifeline to six million children. Junior ISAs were introduced in November 2011 as an attempt to encourage saving for children, following on from the abolition of CTFs at the beginning of that year. However, many CTF holders were left in limbo as they were unable to transfer into or set up a junior ISA, which offers more flexibility and choice of investments, although they can continue to top up existing accounts. Today's move means children with CTFs will now have the same investment opportuni...