Charity bemoans CTF strategy

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Charity bemoans CTF strategy

Fri 28th May 2010

The Child Poverty Action Group has criticised the strategy employed regarding child trust funds (CTFs), suggesting nobody currently knows how useful such financial products will be.

Tom Nichols, press and parliamentary officer for the organisation, noted it is hard to know what sort of impact CTFs will have until the child reaches their 18th birthday and begins qualifying for it.

He remarked: "The resources that were put in will be missed but we had always said that the resources should be redirected and that's not what has happened. They have simply been cut."

In his view, it would have been better if the money invested in CTFs could have been better used by addressing the material needs of families, rather than investing the money in these financial tools.

This week, the treasury revealed it will begin the process of ending CTF payments, saving the government £320 million in the current financial year and £520 million in the next.

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