Question to the HM Treasury:

To ask Her Majesty's Government what are their reasons for preventing grandparents from opening Junior ISAs for their grandchildren; and what assessment they have made of the compatibility of this prohibition with their policy of encouraging people to save more.

The Government is committed to ensuring that young people are supported to save from an early age and into adulthood. Junior ISAs (JISAs) form a key part of this commitment.

Where a JISA is opened on behalf of a child, the account must be set up and managed by an individual with parental responsibility for that child, or the child itself if over 16. To ensure that the ISA regime remains simple and sustainable, placing a restriction on who can open and manage an account prevents more than one Junior ISA of each type (cash or stocks and shares) being opened in error and ensures that there is a single point of contact for the giving of instructions. A grandparent who does not have parental responsibility is therefore unable to open or manage a Junior ISA on behalf of their grandchild.

However, the Government recognises the important role that grandparents can play in building a savings pot for their grandchildren. While parents or legal guardians must open a JISA on behalf of their children, grandparents and others can then add funds to the account, up to the value of £9,000 a year.

The Government continues to keep all aspects of savings policy under review.