The Association of Investment Trust Companies is urging the Government to introduce a second top-up to the child trust fund. Since the beginning of this year, vouchers of £250 or £500 for children from lower income families have been issued to every child in the UK born after 1st September 2002.
The cash will be made available to the child when they reach 18 years old. The government has also promised a top-up of at least £250 when the child reaches 7 years old.
The Association of Investment Trust Companies believes that a second top-up would not only increase the fund for the child, but also keep it at the forefront of parents' minds, encouraging them to save further. They are supporting a second top-up at 11, when the child reaches secondary school.
Our view
The Child Trust Fund is a complete waste of tax-payers money. This will never educate parents or children to save and will be blown on beer, cigarettes and living for today.
For the umpteenth time will the Government talk to us about Education in schools. Financial planning should be the new Religious Education!