A third of parents with children under 18 years old have paid into a stocks and shares ISA (34%) or a cash ISA (33%) to protect against tax changes in the upcoming Budget, Hargreaves Lansdown has found.

The firm’s survey of 2,000 people revealed that other measures taken by parents ahead of the Budget also include making pensions payments, paying into a junior ISA and giving money to family.

The survey, conducted by Opinium, found that the top concerns of the average person for the Chancellor's announcement on 30 October were rising income tax (15%), higher council tax (11%) and more VAT and tax for drivers (8%).

However, for those with children under the age of 18, the top concerns were rising income tax (14%), higher national insurance (9%) and increased VAT (8%).

Head of personal finance at Hargreaves Lansdown, Sarah Coles, said: "Parents are alarmed by potential threats lurking in the Budget, and around one in three have been spurred into action. They’re twice as likely to have taken steps to protect themselves as average.

"Much of this is due to how the Budget threatens families in particular – and some is because of the things that matter to us at the time in life when we’re likely to have children living at home."

To combat these potential changes from the Budget, a third of parents with children under 18 years old have been persuaded by this speculation to pay into stocks and shares ISAs (34%) and cash ISAs (33%). This compares to 18% and 19% of average people respectively.

Furthermore, 31% of parents with children under 18 said they are making extra pension contributions, while the same number have also been persuaded to invest into a junior ISA.

Coles added: "The good news is that parents of children under the age of 18 aren’t just worrying about potential tax rises, they’re taking sensible steps to protect themselves too, and in some cases are twice as likely to have taken preventative measures."

She stated that investing in ISAs and pensions “capitalises on tax relief” while also allowing for investors to know where they stand, making the "most of existing allowances" and protecting "against tax on growth".

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