Tax free Individual Savings Accounts (ISAs) have become increasingly popular among young people and females in the past decade, according to a report by the Halifax . ISAs were introduced ten years ago by Gordon Brown in order to entice British consumers into saving .
37 per cent of households currently have an ISA according to the report, though the amount being paid into the savings accounts has fallen on average since the economic downturn. With savers opting to repay loans and other forms of debt, the average yearly sum being paid into the accounts has fallen from £3,064 in 1999-00 to £2,636 in 2008-09.
In the early stages of the scheme, it was primarily men who took advantage of the tax free allowance. However, despite a 35 per cent rise among male ISA holders in the first seven years of the scheme, women closed the gap due to a 52 per cent increase in the number of women taking out an account. Meanwhile, there was an 88 per cent increase in the number of ISA holders aged under 25, who are typically saving up a deposit for a house.
The report uses information from the Bank of England, HM Revenue and Customs, and the Department for Work and Pensions .






