Simplify Child Trust Funds

Simplify Child Trust Funds

Family Investments, has called for a fundamental shake-up of the child trust fund system and blamed the government for poor take up.  He said the existing scheme is too complex.  People tend to opt out, particularly people with learning or language difficulties and it seem these are the people that the scheme was meant to help save.  According to the HM Revenue and Custom’s latest figures on CTF uptake, between January and March 2008, the percentage of accounts opened with live vouchers was just 39 per cent.

The government should look at incentivising parents to set up accounts early and consider combining the two £250 vouchers given to parents from lower socio-economic groups into a singe £500 voucher which would motivate them more to open an account.  However, he said overall the CTF initiative had been a hugely positive step.

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