Age 7 government child trust fund payments not being released!!!

Paul_Herring

Deepmistrust wrote: »

So am I right in saying that I can't continue to add to the CTF's then?

ICBW, but I got the impression that you can't. At least not after Jan 1st. I'll dig around....

Edit:

I was half right. From http://www.hmrc.gov.uk/chancellors-statement/ctf-announce-qa.pdf

1. My child already has a CTF account - what will happen to it?
CTF accounts already in existence will continue to operate as currently. So we expect that:

• they will continue to be CTF accounts until the child’s 18th birthday, with no withdrawals permitted;
• they will continue to benefit from tax free investment growth;
• friends and family will continue to be able to contribute up to a total of £1,200 a year;
• vouchers will continue to be valid until their expiry date; and
• HMRC will open accounts for children where the voucher has not been used by the expiry date.

[...]

16. When government contributions stop, will I be able to open a CTF account for my child anyway (i.e. without a voucher)?

When the relevant legislation is in place, the Government intends that HMRC will no longer issue vouchers and it will not be possible to open a CTF account (other than for those who have already received a voucher before this date).

So you can continue to contribute to an account opened with a government voucher issued before Dec 31st, but you cannot open an account for any kids born after that.

nixblags

This had been trailed as policy before the election so not shocked at annoucement, but our eldest will be 7 in August so will just miss out on 2nd Payment. However a week before the annoucment we got a letter from our chosen CTF to say they were raising the admin fees. Guess they saw the writing on the wall. A bit of research showed us that this is happening with other similar schemes.

Although the amount we were given was a pittance, as we are older parents struggling to make contributions towards our pensions, anything we could save for our young kids futures was a bonus.

makeApoint

I'm glad they have got rid of this CTF.

For the rich - its nothing

For the middle/working class - most of them wouldn't make further savings to the fund anway, why lock yourselve into something for 18 years? The money given by the gov't will just sit there until their child reaches 18, and probably enough buy them an equivalent of a PS3 in those time.

For the non-working class/benefit claimants - again, the accounts would just sit there until child reaches 18.

Indie_Kid

nixblags wrote: »

Although the amount we were given was a pittance.

It was £250 more than what my parents got for me when I was a baby.

ultrawomble

Blimey! How many more times does it need pointing out to people that the monies in CTF vouchers are given to the child and not to the parent(s)? The money is in the child's name - it cannot be spent by the parent(s)!!

moneysaymoneydo

I agree waste of money and even though i did not want a tory/lib dem coalition i do agree of them getting rid of the CTF. If parents want to save for their childrens future then should come out of their pocket the majority already get either tax credits of some form or family allowance also, and the "low income families" who did receive £500 the majority of them didnt even bother to invest it the government eventually did it on the behalf of the child!

shegirl

ultrawomble wrote: »

Blimey! How many more times does it need pointing out to people that the monies in CTF vouchers are given to the child and not to the parent(s)? The money is in the child's name - it cannot be spent by the parent(s)!!

And exactly what was said that made you have to point it out?We all know!

ultrawomble

shegirl wrote: »

And exactly what was said that made you have to point it out?We all know!

Welcome Back. There's a question waiting for you in post 199

http://forums.moneysavingexpert.com/showpost.html?p=33176161&postcount=199

Answer that and then I'll answer yours.

shegirl

ultrawomble wrote: »

So I take it that you'd like to see this benefit (perhaps all benefits?) returned to their level of 11 years ago? You're obviously annoyed that people are getting a means tested £500 Sure Start Grant whereas you only got £100 and no CTF voucher. I expect that there are people on this forum who think that what you received was too much at the time. Their opinion is as valid as yours. Perhaps you were given too much. Are they right?

:rotfl::rotfl::rotfl:

As stated,I have no reason to be annoyed that they get more and find it rather amusing that you think that is the only reason anyone could find it absurd.Not everyone thinks with their own pocket,thankfully.

If people believe I received too much then they do!I know some do not believe in the grant at all.If people believe that then I have no qualms with it.I would have found a way somehow,just like anyone else can.

Not that that is particularly relevant

trynsave

trynsave wrote: »

I'm completely staggered by your opinions!

Can I just say that I realised that the cessation of the CTF was the topic of conversation and that it was you who mentioned the pregnancy grant before I did! I was merely trying to point out that before the grant those of us on low incomes managed and people will again if/when the grant is stopped. It is therefore representative of non essential Government spending and should be stopped alongside the CTF.

I'm also not actually as old as you may think, my youngest is only 4, so I am well aware of the regulations regarding infant car seats. I did actually acknowledge that a new was a necessity, but luckily your £500 didn't have to stretch to buying one as you didn't drive. How on earth did you manage to get to work when you live in the middle of nowhere? Don't tell me your OH drives or you get a bus etc, etc. Why therefore couldn't you get your second hand goodies home the same way as you managed to bring home new ones? Where there is a will there is a way. You didn't have to find a will as the Govt gave you a get out clause to buy new.

To address your other criticisim, the reason why the elderly should be considered before babies is because they are already here and have contributed to society in their own right. It should be the duty of all want-to-be parents to make rational decisions and plan the arrival of their babies to coincide when they can afford to support their offspring. If you can't afford to heat your house don't have a baby - simples.

I do however agree with you in one respect, being that those in work and contributing via the tax system should have a right to expect the State to help them out when the going gets tough. However the tax system is not a savings plan. You don't have a right to expect to get back out what you put in. Having babies through your own choice is not an example of 'when the going gets tough'. You have chosen to change the status quo of your life and those changes should be planned for financially ahead of time.

It is the 'me, me , me' attitude of many that has helped push our country into it's present shambolic state.

I must add however that I sympathise with parents who have added to their children's CTF's in good faith, and who now feel cheated by trying to do the right thing. The Government should have added a clause to allow additional monies to be withdrawn, leaving only the Government's contributions behind to mature at 18. That would have been fair.

I would just like to thank emweaver for a private message telling me to 'back off' in response to comments I made earlier in this thread.

Everyone is entitled to their own opinions and a public forum is somewhere where we are allowed to air them.

I accept that perhaps I got a little personal for which I apologise, but I was just reacting to information supplied.

My general comments are ones I stand by. All non-essential spending has to stop asap and everyone in the country is going to have to accept that - fact!

I shall now bow out.