A new savings account for young Britons in long-term care is being launched in a bid to give donors a direct way of providing money to “some of the most vulnerable young people in the UK”.
The Department for Education has appointed The Share Foundation charity to help open Junior ISA savings accounts for an estimated 55,000 children who have been in care for more than a year and do not have a Child Trust Fund .
The Government said it will provide initial payments of £200 for each account, starting this summer, while The Share Foundation will seek people looking to contribute to the scheme and distribute the funds raised from donors amongst the Junior ISAs.
The tax-efficient savings accounts can be held in cash or shares and will mature and be accessible on the account holder’s 18th birthday.
Announcing the scheme, Children’s minister Tim Loughton said: “These children are some of the most vulnerable in our society and we are committed to investing in them so they can thrive.”
“I want these savings to be worth much more than £200 by the child’s 18th birthday and I hope individuals and organisations will also want to use these accounts to contribute and invest in the futures of these vulnerable children.”
“The savings will help them when they reach 18 and they are facing serious choices as they start out in the adult world.”
“I am confident that, when combined with financial education, holding a real financial asset in a savings account will encourage these young people to learn about how to manage their money well and give them a decent start in their adult lives.
Gavin Oldham, Chair of The Share Foundation, commented: “This appointment presents a major opportunity to achieve our long-held objective of providing an inheritance for some of the most disadvantaged young people in our community. “
