The government will permit the transfer of cash saved in now-defunct child trust funds (CTFs) to junior ISAs.
The Chancellor, George Osborne, said the decision "supports hard-working families who want to save for their children", reports the Daily Mail.
JISAs were introduced in 2011 to replace CTFs, which were no longer receiving government contributions.
Child trust funds were introduced by Labour and gave parents of every child born in Britain from 2002 seed money of £250.
However, transfers from CTFs to JISAs have previously not been permitted. It was hoped a rule change would be introduced in the Autumn Statement earlier this month, but Osborne did not mention the savings plans.
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