Cash-strapped parents unable to pay into children’s Junior ISA accounts

Nearly one million Junior ISA accounts received no new funds in the 2023-24 financial year, new figures from HM Revenue and Customs (HMRC) reveal, highlighting the ongoing impact of the cost-of-living crisis on families.

An analysis of the HMRC data, conducted by Nottingham Building Society following a freedom of information request, found that approximately 967,000 Junior ISAs (JISAs) saw no contributions during the year.

This marks an increase from 869,000 accounts in the previous year, 2022-23.

The building society noted that around two in five Junior ISAs had no money added over the entire year.

While the total number of Junior ISAs grew to 2,367,000 in 2023-24, up from 2,167,000, the rate at which accounts received no contributions outpaced this growth. All figures were rounded to the nearest 1,000.

This trend suggests a "widening gap between intent and action," according to the Nottingham Building Society, indicating that families are likely struggling with financial pressures.

Between 2020–21 and 2023-24, the total number of Jisas has risen by 37%, while the number of accounts receiving no contributions in a given tax year has jumped by 45%.

Some 78,000 Jisas received the full £9,000 subscription in 2023-24, representing around 3% of the total number of Jisa accounts.

Nearly three-quarters (73 per cent) of Jisas had less than £500 deposited in them during the year 2023-24 and 92 per cent received deposits of less than £2,500.

Harriet Guevara, chief savings officer at Nottingham Building Society, said: “Junior Isas are meant to help families build a financial head start for their children, but these figures suggest a growing number of accounts are effectively sitting empty – and that’s a warning light.

“When around two in five Jisas receive no contributions in a year, it points to the real pressure families are under. The data suggests that many parents are opening accounts for their children with all the right intentions, but that day-to-day costs are crowding out long-term saving.

“Child savings should not be something only a small minority of people can fully use. The priority should be making it easier for families to contribute what they can – little and often – and ensuring the system supports genuine financial resilience, not just high contributions.”