8 in 10 parents 'object to Child Trust Fund cuts'

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8 in 10 parents 'object to Child Trust Fund cuts'

Thu 18th Feb 2010

As many as 80 per cent of parents think that all children should be eligible for a Child Trust Fund (CTF), despite plans from the Conservatives to change the system.

Research carried out by Family Investments found that 96 per cent of respondents felt that the CTF had been a good thing and had encouraged them to save for their child's future.

However, the Conservatives have outlined plans to restrict payments to families that earn £16,040 or less a year if they come to power. The party estimates that this will save them £300 million a year, although the Institute of Fiscal Studies puts the sum at £225 million.

John Reeve, chief executive at Family Investments, said that if the plans came into force, parents who are on minimum wage would no longer qualify for help.

In January, Family Investments stated that the CTF scheme has helped to encourage parents to save for their children's future, with 71 per cent of parents opening a fund within a year of their child's birth.

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