Almost a million of the UK’s 2.37 million junior ISAs (JISAs) received no contributions in the 2023/24 tax year, Nottingham Building Society has revealed.

HMRC data obtained by the building society via a freedom of information request has shown that the number of families opening JISAs jumped by 37% between 2020/21 and 2023/24.

However, in the 2023/24 tax year, 967,000 accounts saw no contributions, equating to 41% of accounts. Between 2020/21 and 2023/24, the number of accounts that received no contributions increased by 45%.

The Nottingham stated that while this suggests that more families are intending to save for their children’s future, a growing proportion are unable to follow through with regular contributions.

The society added that the majority of families that are able to make contributions to their JISAs, relatively few are able to maximise the tax-efficient benefits. Almost three quarters (73%) of accounts had less than £500 deposited during the year, while 92% received deposits of less than £2,500.

Just 3% of all JISAs received the full £9,000 annual contribution allowance, down from 4% in the previous year.

Chief savings officer at Nottingham Building Society, Harriet Guevara, said: "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.

"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.

"It is critical that policymakers and the industry come together to focus on practical measures that help more families save for their children. This should include clearer guidance, better use of prompts and support at key moments, like birth registrations, childcare transitions and school milestones, as well as product innovations that make small, regular contributions easier and simpler."

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