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Abolish the Childrens Trust Fund

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I have never been a fan of this overly generous scheme. While I do actively believe people should save - I have a very big issue with £250 being given to somebody for their child. If somebody wishes to save for their child, they should do so from their own pocket. Children's accounts already benefits from no tax.

I do not want to subsidise the savings of other people! The government says it wants people to have money in the future and thus lower poverty - how about they abolish CTF and use the money to pay off Government debt - then the vaunted future generations will pay out less on tax and thus will be less poor.

I save up for my own nephew - but I did that by CHOICE. I would never dream of strangers having money taken from them to give to him. We should pay for schools etc, but the lines must be drawn there. That far and no further.

As a childless man, and one who wishes to remain childless - I am tired of subsidising the future lifestyle of others. If parents are so eager to save for their child - then tell them to put £5 pcm away in a savings account. My sister is on a seriously tight budget and she managed it by watching her own cash and didn't need a hand out taken from others.

Comments

  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    What does this have to do with claiming benefits? :confused:
    Gone ... or have I?
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Potentially interesting point, but it should be on Discussion Time.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • I was actually thinking about this the other night. With CTF's they have the option to transfer it to an ISA when then reach 18. I was born much too late (about 15 years!) however that means that people who have CTF's will have much better ISA accounts than I'll ever have and so will be getting more tax free advantage. Why can I not put a lump sum in to match this advantage?
    Northern Ireland club member No 382 :j
  • Boppy_2
    Boppy_2 Posts: 317 Forumite
    I have never been a fan of this overly generous scheme. While I do actively believe people should save - I have a very big issue with £250 being given to somebody for their child. If somebody wishes to save for their child, they should do so from their own pocket. Children's accounts already benefits from no tax.

    I do not want to subsidise the savings of other people! The government says it wants people to have money in the future and thus lower poverty - how about they abolish CTF and use the money to pay off Government debt - then the vaunted future generations will pay out less on tax and thus will be less poor.

    I save up for my own nephew - but I did that by CHOICE. I would never dream of strangers having money taken from them to give to him. We should pay for schools etc, but the lines must be drawn there. That far and no further.

    As a childless man, and one who wishes to remain childless - I am tired of subsidising the future lifestyle of others. If parents are so eager to save for their child - then tell them to put £5 pcm away in a savings account. My sister is on a seriously tight budget and she managed it by watching her own cash and didn't need a hand out taken from others.

    Was your nephew born after 1st September 2002, I only ask because your nephew will benefit from the £250 if he was whether his parents chose to invest it or not - I forgot to invest my sons and it was done for me. Don't forget some children get an additional £250 as well ;) oh I can almost see you spitting feathers from way over here!!
  • I have never been a fan of this overly generous scheme. While I do actively believe people should save - I have a very big issue with £250 being given to somebody for their child. If somebody wishes to save for their child, they should do so from their own pocket. Children's accounts already benefits from no tax.

    I do not want to subsidise the savings of other people! The government says it wants people to have money in the future and thus lower poverty - how about they abolish CTF and use the money to pay off Government debt - then the vaunted future generations will pay out less on tax and thus will be less poor.

    I save up for my own nephew - but I did that by CHOICE. I would never dream of strangers having money taken from them to give to him. We should pay for schools etc, but the lines must be drawn there. That far and no further.

    As a childless man, and one who wishes to remain childless - I am tired of subsidising the future lifestyle of others. If parents are so eager to save for their child - then tell them to put £5 pcm away in a savings account. My sister is on a seriously tight budget and she managed it by watching her own cash and didn't need a hand out taken from others.

    You have made your choice,the govt.has chosen to invest in our greatest asset our childrens future.But I agree this isnt a subject for this board and should be moved to DT or ignored.
  • Boppy wrote: »
    Was your nephew born after 1st September 2002, I only ask because your nephew will benefit from the £250 if he was whether his parents chose to invest it or not - I forgot to invest my sons and it was done for me. Don't forget some children get an additional £250 as well ;) oh I can almost see you spitting feathers from way over here!!

    And I can see you sucking up those feathers. My nephew was born on 1999 - go fish.

    I have little interest in subsidising your kids savings, or anyone elses for that matter. I CHOSE to give money to my nephew. I would choose not to give any to your kid.
  • pupsicola
    pupsicola Posts: 1,175 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    And I can see you sucking up those feathers. My nephew was born on 1999 - go fish.

    I have little interest in subsidising your kids savings, or anyone elses for that matter. I CHOSE to give money to my nephew. I would choose not to give any to your kid.

    I think you need to go and calm down and take some medication. How odd that you have nothing better to do with your day than come on here and try and start an argument

    :rotfl::rotfl::rotfl::rotfl::rotfl:
  • katie1
    katie1 Posts: 837 Forumite
    And I can see you sucking up those feathers. My nephew was born on 1999 - go fish.

    I have little interest in subsidising your kids savings, or anyone elses for that matter. I CHOSE to give money to my nephew. I would choose not to give any to your kid.


    So the bottom line of your story is you are P***ed off because your nephew doesn't get this gov fund .:rolleyes:
  • Zara33
    Zara33 Posts: 5,441 Forumite
    1,000 Posts
    Child Trust Funds
    The Child Trust Fund (CTF) is a long-term tax-free savings and investment account for children born on or after 1 September 2002. The govenment will give every eligible child a voucher worth at least £250 to start the fund. Your child will be eligible if they:
    • were born on or after 1 September 2002
    • qualify for Child Benefit
    • are living in the UK
    • not subject to any immigration restriction.
    You use the government voucher to invest in a special account that your child will be able to access when they reach 18. Parents, family and friends can add up to £1,200 to the account each year. There is no tax to pay on the CTF income or any gains (profit) it makes until your child reaches age 18.
    If your child is part of a household getting Child Tax Credit, with a houshold income at or below £16,040 for tax year 2009-10, your child will get an additional £250, this will be paid directly into the CTF account.
    Once your child reaches seven years of age, your child will get a further payment of £250 (£500 if you're on a low income).
    From April 2009, if you receive Disability Living Allowance for your child, your child will be entitled to an annual payment of £100, with severely disabled children receiving £200. These payments will be paid directly into the CTF account from April 2010 (in respect of the previous year).
    This further payment recognises that disabled children are likely to have higher financial needs when they make the transition to adulthood.
    To qualify for a voucher you have to be claiming Child Benefit for your child. If you haven't received a voucher within a month of starting to claim Child Benefit call the CTF helpline on 0845 302 1470 (8.00am to 8.00pm).
    If you don't open a CTF account within 12 months of the date shown on the voucher, the government will open a CTF account for your child.

    From a leaflet i received in the post this morning: www.hccf.org.uk
    Spring 2009 leaflet not yet on their web page.
    Hit the snitch button!
    member #1 of the official warning clique.
    :D:j:D
    Feel the love baby!
  • TotallyBroke
    TotallyBroke Posts: 1,540 Forumite
    Part of the Furniture Combo Breaker
    The way I see it is that by the time those first children will be reaching 18 the rules will have changed. I personally think that then they will have to use it to pay off their student loan debt rather than waiting for years of working to pay it back into the system.
    It'll probably work out cheaper to give each child £250 than 1000s in student loans and benefits.
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