Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to encourage young savers.

At the Budget it was announced that, from 1 July 2014, the limits for Junior ISAs and Child Trust Funds (CTFs) will rise from £3,720 to £4,000.

Following a public consultation, the Government has decided to allow the transfer of savings from CTFs to Junior ISAs. We are committed to ensuring that there is a clear and simple way to save for all children and believe that parents should be allowed the opportunity to transfer from a CTF to a Junior ISA if they consider this to be the most appropriate account for their child.

The Government has clauses in the Deregulation Bill, currently making its way through Parliament, which will enable the transfers. We hope this option to transfer will be available by April 2015.