George Ladds, head of investments and pensions research at Fair Investment Company, has been calling for the launch of a children's ISA since May, and welcomes the government's announcement that one is to be launched next autumn.
The news that the Government is creating a Junior ISA is fantastic, and something I have been calling for ever since the announcement back in May that the Child Trust Fund was to be scrapped.
Back then, I was happy to see the CTF go providing something better, ideally a children's ISA, was brought in to the replace it, and it seems the government has come through on this one.
The government has announced that the new Junior ISA will offer parents a simple and tax free way to save for their child's future, and apart from the fact that the funds are locked into the account until the child reaches adulthood, will work exactly like standard ISAs - tax free returns, cash and stocks and shares options and a cap on contributions.
Obviously, the key difference between the old CTF and the new Junior ISA is the lack of government contribution, and although the vouchers were useful, they should never have been the only reason parents saved for their children.
With the vouchers came an assumption that as parents we are incapable of saving for our children without funding from the state. The simple fact is, those who can afford to save will and shouldn't be getting handouts to do so..
Launching a Junior ISA is a good move. Not only will it help to teach children the importance of saving from an early age, and encourage parents and other family members to put money away for their children, but the fact that it is an ISA means they will already be familiar with the concept of ISA investment when they go on to have a standard ISA of their own.