Child Trust Fund - Provider not passing on full £3,600 allowance

Burrowsy

Hi there

New to positing but am fuming.

I've had CTFs with Police Mutual since they started and I normally invest the full allowance every year on my daughters' birthdays.

I got the statement recently as it's my eldest's birthday soon and noticed on the letter they referred to the Government limit of £1,200. I know it's been increased to £3,600 in line with the allowance on new Junior ISAs to which I don't think my daughters are entitled because they have CTFs (?).

I thought it just an error but no. Just rang Police Mutual and they said it was a management decision to stick with the £1,200 limit. They couldn't explain the basis for that decision and it wasn't mentioned in the letter that came with the statement.

I have now escalated it as a complaint..... based on the fact that their letter misquotes the Government's limit and I am being unfairly penalised by not being able to maximise my tax free investments for my kids to the tune of £2400 per year per child. At a time when others can benefit from Junior ISAs and tax credits have been lost this is far from fair.

We'll see how the complaint goes but the longer it takes the more interest we lose from the £2400 extra I would have put in on the birthday.

Any advice out there. I'm very happy with the performance of the CTF (sakeholder) so am not looking to change. This must affect everyone with a CTF with Police Mutual.

Cheers

Paul

xylophone

http://www.hmrc.gov.uk/thelibrary/si2011-2447.pdf
"small Firm Impact Test: Small firms – including credit unions and friendly societies – offer CTF. The method for increasing the CTF limit has been arrived at in consultation with industry representatives, including those representing the smaller CTF providers, and there has been no evidence that it poses particular problems for small firms. The new subscription limit is voluntary and it is for each provider to decide whether they wish to implement it."

May be relevant?
Presumably PM would argue you can change providers if you wish?

opinions4u

If you don't like their rules, move on.

Mikeyorks

'Move along' - surely? You're old enough to remember 'Good evening all'?

And you could change your signature to the Dixon of Dock Green theme tune! I'll hum it - you key it in.

wazza24

i recently moved the kids CTF's pretty easy i thought, took about 2 weeks in total.....:)

wriggly

You have to wonder how difficult it would be for a company to raise the limit. You change a number in a computer somewhere. If it was a cash CTF paying good interest, you could understand them wanting to restrict the amount they take in, but as it is a stakeholder, any increase in assets should make management of the fund cheaper.

I think a complaint is justified - they have restricted your options for no good reason ("management decision" - great bureaucratic buzzword). But the answer seems to be to transfer elsewhere.