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

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Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 24 May 2010 at 4:19PM in Benefits & tax credits
This is the discussion thread for the following MSE News Story:

"The Government will stop offering cash to children in a CTF as part of the £6.2 billion of savings announced today
..."
Read the full story:
Child trust fund payments axed

Also see:

Act fast to grab top child trust fund deals
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Comments

  • lanstrom
    lanstrom Posts: 204 Forumite
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    So am I right in saying that my child (who will be 7 on the 9th June) will still get the £250 voucher ?
  • JPS29
    JPS29 Posts: 1,607 Forumite
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    Good old Tories.

    Smacks of Thatcherism. She was the milk snatcher and this lot are now removing CTF's. We're in for a great 5 years...........
  • spcdust
    spcdust Posts: 14 Forumite
    edited 24 May 2010 at 12:07PM
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    So this would be an example of David Cameron "Protecting the people who do the right thing"? Typical cycle of Governments, each administration dismantling the previous Governments initiatives with no regard to the electorate who foolishly try to do the "right thing".

    I struggle to ensure that I put away the maximum amount each month into both my children's funds. These contributions, I hope, will go some way to get them through the high cost of University or possibly a deposit for their first flat/house. The CTF was a good scheme which encouraged parents to consider their newborns financial security at this early stage with a view to their future but with the swipe of a pen it's abolished. The abolition of this scheme sends out the wrong message, but hey it's a short term fix with no regard to the future.

    I guess it's tax status remains protected, but this being a Tory dominated coalition I wouldn't put anything past them.
  • jacqhale
    jacqhale Posts: 312 Forumite
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    That's how I read it. So my baby due end of July will get it but her and my 3 year old won't get the extra payment when they are 7. (hope so anyway or we will have to fork out the extra money to give baby a 'trust fund' or something similar else that would be totally unfair if one had money and the other didn't!)

    Always thought it was a waste of tax payers money to be honest .....
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
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    my daughter is 7 at beginning of feb so will just miss out on the 2nd payment, as were classed as low income it will be a disappointment we wont receive it. I understand the reasoning behind it though. Will just have to contribute more myself to it!
  • Molly41
    Molly41 Posts: 4,919 Forumite
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    Just think yourselves lucky that you got it at all. I never got it for my four children as they were to old!
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  • shegirl
    shegirl Posts: 10,107 Forumite
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    About time!!!!

    Complete waste of money and it's not the States job to save and provide financially for our childrens futures.It's our job and CTF don't encourage people to save.

    Hope there are more cuts of certain rediculous 'benefits/grants'
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  • Indie_Kid
    Indie_Kid Posts: 23,077 Forumite
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    Molly41 wrote: »
    Just think yourselves lucky that you got it at all. I never got it for my four children as they were to old!

    Exactly! Why should tax payers pay for this type of thing? And it's not even means-tested.
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  • mmillie
    mmillie Posts: 81 Forumite
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    The big question for me is will we be able to move the money out of the CTF? Performance of CTF accounts is poor because the providers know you are locked in to a particular type of investment vehicle which has limited competition. With no new cash coming in, the incentive to be competitive will all but disappear, and we can look forward to years of below standard accounts unless the whole scheme is wound up and we can invest the money as we see fit.
  • wriggly
    wriggly Posts: 362 Forumite
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    sh1305 wrote: »
    And it's not even means-tested.

    Well, means-testing, originally proposed by the Conservatives, would have been silly. Why should a teenager receive or not receive a welfare payment based on what their parents earned 18 years previously?

    For fairness, I think parents of any child (especially those that missed out because they are too old or too young) should be able to open a CTF, no government funding, but a tax-free ISA-like account for the child.
This discussion has been closed.
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