Kevin Brown, savings specialist at Scottish Friendly comments on the announcement of a British ISA
"It's encouraging to see that the Chancellor chose to announce in his budget an extension to the ISA allowance, in the form of an extra £5,000 tax-free to invest exclusively into the UK.
"Saving and investing is increasingly important for people that are trying to martial their stretched resources through the current economic turbulence.
"Providing further incentives to help households prepare for any future financial shocks via saving and therefore to be more financially robust over the long-term is crucial and it's pleasing there is a commitment to that today.
"Our own data shows that saving remains a key priority even in the current challenging economic environment. Families in particular are prioritising saving for children over themselves1. Since 2019, we have seen the number of Junior Isas (JISAs) opened by parents surge by 101% and ISA investments drop over this same time period.
"These measures will give those families greater incentives and support.
"However, one missed opportunity was to broaden the scope of family ISA saving and investing across the generations. Our research has shown that 7 in 10 (68% of parents) want grandparents to be allowed to open a JISA for their grandchildren, however the current rules stipulate that it has to be the parent or the guardian that does this first.
"There needs to be a change to JISA rules to allow other family members, such as grandparents, to open them too. This would provide a boost to children's savings.
"The aim of a JISA should be to help put kids across the UK on a stronger financial footing as they head into adulthood and it should be strongly considered as a future reform of the JISA rules to help the next generation of UK savers and investors."
Contacts for more information
Kevin Brown, PR & Communication, Scottish Friendly
07512194336
Editors notes:
Remember that the value of investments can go down as well as up and you could get back less than you paid in.
Past performance is no guide to future results.
Tax treatment depends on individual circumstances which can change in the future.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
In recent years Scottish Friendly has significantly restructured its business. The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.