The move, announced today by Chancellor George Osborne in his fourth Budget, will offer a lifeline to six million children.

Junior ISAs were introduced in November 2011 as an attempt to encourage saving for children, following on from the abolition of CTFs at the beginning of that year.

However, many CTF holders were left in limbo as they were unable to transfer into or set up a junior ISA, which offers more flexibility and choice of investments, although they can continue to top up existing accounts.

Today’s move means children with CTFs will now have the same investment opportunities as those who already hold a junior ISA and should pave the way for a significant improvement in choice and outcomes for over six million child savers.

Junior ISAs have become a popular proposition for parents saving or investing for their children as they offer benefits and tax advantages to both the parent and child that no other savings vehicle has before. No other products allow a child to own investments in their own right which are completely tax efficient; there is nothing currently that enables a child to roll their investments into another tax free vehicle at 16; and never before have parents themselves been sheltered from the tax man when investing for their children.

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Junior ISAs also offers grandparents a way of making the most of their inheritance tax allowance in advance and saving tax free for their grandchild.