Government to face huge fight against scrapping Child Trust Fund
Responding to the government’s decision to end the Child Trust Fund David White, Chief Executive of The Children’s Mutual, said:
“On behalf of Britain’s families we are appalled by the Government’s announcement today. This is a betrayal of millions of families hoping to save for their children’s futures. The government has been saying cuts would be painful but we were not told it would have such a devastating affect on young savers.
“The Child Trust Fund is the single most successful savings policy to date. This sort of short term cut does not address the pressing need for families to save or recognise the significant benefit to society that the CTF will bring from 2020 as maturing funds return an anticipated £2.96bn each year to the economy. There is still time to reverse this decision so we will be talking to every MP, parenting group, community organisation, and savings provider across the country to help protect the CTF for future generations. Parents must be given the best possible vehicles to save for their children – without the CTF, millions are instead having one of the very best options taken away.
“The CTF has changed the nation’s savings habits and we congratulate families across the UK for recognising the critical importance of saving for their children’s futures. Today’s parents are paying out an average of £30,000 to fund their children between the ages of 18 to 30 and these costs are only expected to rise for families of tomorrow. We urge families to not be disheartened by the Government’s announcement but to continue to help their children fulfil their future potential by saving regularly over the long term. CTF holding children now hold a unique asset that others will not.
“We also reassure our current and existing customers that having been in existence for the last 129 years, we have been providing long-term savings accounts for children and helping support families throughout our history. We are committed to continuing to do so in the future.”