Scottish Friendly builds case for JISA reform with publication of latest family finance report
The 2025 Scottish Friendly Family Finance Tracker, an annual snapshot of the investing and savings habits of UK households, is published today.
The report shows many households are still in the grip of the cost of living squeeze. Despite a growing awareness of the importance of saving and investing, particularly amongst parents, the rising cost of living remains prohibitive for many. When it comes to putting something away for the future, even less is being put away compared to last year.
The modern mutual, which is pushing for a change in the rules to allow other family members to set up a Junior ISA on a child’s behalf, is building an evidence bank in support of the case for making the proposed change become a reality. The Family Finance Tracker data will play a key role in that.
The full report contains a wealth of data and can be accessed here. Of particular note:
2,511 UK adults were interviewed about their finances in the first 3 months of 2025 (Jan – March 2025) and between March 2024 and March 2025.
This included 767 parents of children under 18 who were interviewed to understand their views on Junior ISAs (JISAs), the factors influencing their decisions to open these accounts, and their views on reforms to make them more accessible.
The findings show demand for a change to the rules on who can open a JISA. That demand comes from both parents and from extended family, in particular from grandparents.
28% of the general population would consider setting up a JISA for a child that is not their own if the rules were changed to allow other family members to do so. That rises to 31% for grandparents with a grandchild under 6 years old.
28% of parents would like grandparents to be able to set up a JISA for their child, showing a strong desire for more flexible options in who can open these products. Just 5% of parents said they didn’t want anyone else setting up a Junior ISA for their child.
39% of UK adults had used a savings account in the first three months of 2025, 18% had paid into a cash ISA, 16% a pension and 9% a stocks and shares ISA.
The main reasons people cited for opening or starting to use these products was that they had become more aware of the importance of saving (28%); the cost of living in the UK and energy price cap rises (25%); or they had a new specific goal in mind (24%). Most people gave one or two reasons.
Those with children were more likely than those without to say they had become more aware of the importance of saving (32% vs 25%), or they had a new specific goal in mind (30% vs 21%) as a reason for saving more.
Political and economic events had some influence on peoples saving and investing behaviour in the first few months of 2025. 11% said the political situation in the UK was the main reason they decided to open or start using a financial savings or investment product; 10% said the Monetary Policy Committee interest rate uncertainty; 5% said world events. Meanwhile 3% said the political situation in the USA was the driver. Tax year end was a driver for only 8% of respondents.
Scottish Friendly savings specialist Kevin Brown said: “Families across the UK are facing a perfect storm of rising costs, flatlining incomes and ongoing economic uncertainty – our Family Finance Tracker clearly shows a growing understanding of the importance of saving and investing but circumstances, for parents in particular, stop them from being able to act on it.
“This is why we believe a small change in the Junior ISA rules could help to make a big difference for many children across the UK who don’t currently have a JISA product set up for them. We are now proactively calling on the government, as it looks at ISA reform more generally, to grasp this opportunity to help set more children on the path to greater financial resilience with the help of extended family – many of which our research shows are clearly willing to step up to help out.”
-ENDS-
For more information contact:
07793 564 351
Notes to Editor:
Spring 2025 research that sits behind the Scottish Friendly Family Finance Tracker was conducted by the 3Gem between March and April this year. It comprises responses from 2,511 UK adults aged between 18 years and 65+.
Winter 2024 research was conducted by 3Gem with a sample of 1,500 exclusively comprising UK parents of children under 18.
Spring 2024 research was conducted in conjunction with Cebr and 3Gem and had a sample of 2,500.
The Scottish Friendly Family Finance Tracker sets out to track how UK families are managing their short-, medium- and long-term financial goals and priorities.
Short-term financial goals were described to participants as being goals up to 6 months ahead, medium-term as being between 6 months to 5 years ahead, and long-term as 5+ years ahead.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides its members 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.
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.
Disclaimer
Remember that the value of investments can go down as well as up and the child 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.