MPs: Government could do more on child trust funds

28 November 2006
Seven in ten MPs want the government to do more to increase the uptake of Child Trust Fund (CTF) vouchers, according to research from Nationwide Building Society.

As many as 92 per cent of Labour MPs feel that the government should ensure that children benefit from the full savings potential of their CTF by encouraging parents to take them up early on in a child's life.

Many MPs also called for extensions of child savings schemes – 58 per cent agreed that those too old for a CTF and too young for an Isa should be eligible for tax-free savings of up to £1,200 annually.

Current government savings provision for young people allows CTF accounts to 'rollover' into Isas as they mature from 2020 on.

Treasury minister Ed Balls last week noted that over two million UK children now have a CTF account.

Mr Balls committed the government to "entrench a culture of savings for people of all ages".

To that end, 69 per cent of Labour MPs surveyed by Nationwide believe an additional top up to the CTF at age 11 would improve savings culture among today's young people.

For more information on child savings, click here.

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