Shocking Data Shows Nearly One Million Junior ISA Accounts Empty in 2023-24
New figures released by HM Revenue and Customs (HMRC) have revealed a concerning trend in child savings, with nearly one million Junior Individual Savings Accounts (JISAs) receiving no contributions whatsoever during the 2023-24 tax year. The data, obtained through a Freedom of Information request by Nottingham Building Society, indicates that around 967,000 JISA accounts remained completely unfunded throughout the entire financial period.
Rapid Growth in Inactive Accounts Outpaces Overall JISA Expansion
The analysis conducted by Nottingham Building Society uncovered that the number of JISAs receiving zero contributions has been increasing at a significantly faster rate than the overall growth in JISA accounts. Between the 2020-21 and 2023-24 tax years, the total number of JISAs in existence rose by 37%, while the number of accounts with no contributions jumped by a substantial 45%.
This widening gap suggests that while more families are opening JISAs with good intentions, financial pressures are preventing them from actually funding these accounts. The building society noted that approximately two in every five Junior ISA accounts received no money at all during the 2023-24 period.
Cost-of-Living Crisis Blamed for Crowding Out Long-Term Savings
Harriet Guevara, Chief Savings Officer at Nottingham Building Society, expressed serious concern about the findings. "Junior ISAs are meant to help families build a financial head start for their children, but these figures suggest a growing number of accounts are effectively sitting empty – and that's a warning light," she stated.
Guevara emphasized that the data points to the real pressure families are currently facing. "When around two in five JISAs receive no contributions in a year, it points to the real pressure families are under. The data suggests that many parents are opening accounts for their children with all the right intentions, but that day-to-day costs are crowding out long-term saving."
Detailed Breakdown Reveals Stark Savings Disparities
The HMRC figures, all rounded to the nearest thousand, provide a detailed picture of the current state of child savings in the UK:
- Total JISA accounts in 2023-24: 2,367,000 (up from 2,167,000 in 2022-23)
- JISAs with no contributions in 2023-24: 967,000 (up from 869,000 in 2022-23)
- JISAs receiving the full £9,000 subscription: 78,000 (approximately 3% of total accounts)
- JISAs with less than £500 deposited: 73% of all accounts
- JISAs receiving deposits under £2,500: 92% of all accounts
This distribution reveals that while a small minority of families are able to maximize their JISA contributions, the vast majority are either unable to save at all or can only manage minimal deposits.
Calls for Systemic Change to Support Family Savings
Guevara called for urgent action to address the growing problem, stating: "Child savings should not be something only a small minority of people can fully use. The priority should be making it easier for families to contribute what they can – little and often – and ensuring the system supports genuine financial resilience, not just high contributions."
The building society's analysis suggests that without intervention, the trend of inactive JISA accounts could continue to worsen, potentially leaving millions of children without the financial head start that these accounts were designed to provide. The data serves as a stark reminder of how broader economic pressures are impacting families' ability to plan for their children's futures.
