Similarly, child benefit should be means - tested, and the savings applied to a government matching programme for
child trust funds for the lowest income groups.
It is, after all, a rather strange process where everyone
gets child trust funds and then most people on middle incomes use them to pay their tuition fees.
The Stakeholder Society served as a basis for the introduction
of Child Trust Funds in the United Kingdom.
Labour said today that Lib Dem plans
on child trust funds and Conservatives pledges to scale back child tax credits amount to a «coalition of cuts for children».
Given that he was (unfairly) attacked for not paying capital gains tax when he was not liable for it, I wonder if that makes whether or not to use one of the last full
Child Trust Fund vouchers a dilemma for him?
The Sunday Times warns Cameron not to neglect the middle classes: «Instead of wooing the middle classes, [Conservatives] now talk of removing benefits such
as child trust funds, child tax credits and Sure Start children's centres.
The Guardian quotes David Laws saying this: «As the chancellor indicated, we will pass legislation to end
child trust fund payments and this will save # 320m in 2010 and 2011, rising to # 520m in 2011 - 12.
Disabled children and the poorest third of families will continue to receive both
new child trust funds at birth and top - up payments.
In actual policy, Gordon Brown and the British Labour Party initiated the United
Kingdom Child Trust Fund, while in the United States the idea has been implemented in the form of Individual Development Accounts and argued for by Michael Sherraden.
In a reasonably spirited weekend interview, Gordon Brown attacked Lib Dem plans to trim tax credits for those on decent incomes, and to axe the
universal child trust fund completely.
The shadow chancellor also said he would reverse the effects of the government's move to end tax relief on pension funds, would abolish the
national child trust fund for the rich and remove tax credits from families earning more than # 50,000.
The Tories have announced plans to end tax credits for families with an income of more than # 50,000 a year and to
restrict child trust funds.
More than a # 1bn will be cut form the budgets of local councils,
while Child Trust Fund payments will also be scrapped in a move the new government hopes will eventually save more than # 500m.
What the Tories are saying
about child trust funds, child tax credits and Sure Start — they're saying, «let's residualise, let's make the welfare state just for the poor» but [this goes against] all the evidence in terms of maintaining public support [for the welfare state].
The Conservative plan is to squeeze the middle class hard, cutting child tax credits for families on total household incomes over # 31,000, and
scraping child trust funds for all but the poorest families.
The document says that women have reacted badly to «visible and prominent» issues, including tuition fees, abolition
of child trust funds, changes to child tax credits, benefits and income support.
The benefit of doing this is that some Junior ISA providers pay a higher interest rate than is available
on Child Trust Funds.
Although no
new Child Trust Funds are being issued, the registered contact, other family members and friends can continue to add to the account until the child reaches 18.
The current sponsors are the NSPCC, Children's Mutual (
Child Trust Funds) and the Government's family information services phone line.
The abolition of
the child trust fund will deprive tens of thousands of children of a «vital nest egg», a thinktank has argued.
The Government's tax - free children's savings product, the Junior ISA (JISA), was launched in November as a replacement to
the Child Trust Fund.
But on the basics of tax and spend, they have persistently made non-progressive choices - tax cuts that disproportionately benefit the rich; scrapping
the Child Trust Fund; phasing out tuition fees.
By your logic about «scarce public funds», surely it would be fairer to give
the Child Trust Fund only to poorer families, rather than as a capital endowment for all young people?
For what it's worth, I'd agree that scrapping
the child trust fund was a step backwards in this regard.
After a short interim in which newborns will receive a mere # 50 or # 100,
the Child Trust Fund (CTF) is in effect to be axed.
Among his proposed # 15 billion in savings - cuts in tax credits,
child trust funds and winter fuel payments to pensioners - as well as closing tax loopholes and avoidance.
They would need to drop their opposition to tuition fees and
the child trust fund.
We have had a discussion on
the Child Trust Fund before on the Social Liberal Forum blog.
Cuts in «middle class welfare» payments, such as
the Child Trust Fund, the Child Tax Credit and Child Benefit;
We can welcome the Mansion Tax and be critical of the LibDems on
the Child Trust Fund.
«But what this is about is giving a little with one hand and taking away a lot, because child tax credits for middle class families are to be cut, child tax credits are to be cut,
child trust funds are to be cut, Sure Start children's centres for our children are to be cut, the schools budget is to be cut.»
James: I very much appreciate your comments on
the Child Trust Fund.
On one point I will completely concede to you: the party's position on
the Child Trust Fund was misguided and we should not have axed it.
The idea of a universal capital grant was taken up in the UK in a modest way by the previous Labour government in the form of
the Child Trust Fund, [7] one of the first policies to be abolished by the Coalition government.
Child Trust Funds will ensure that «no child is left out» and ensure all children have the best possible start in life, Chancellor Gordon Brown said today.
Charles Kennedy has said that the Liberal Democrats would scrap plans for
Child Trust Funds, and invest the money in early years education instead.
The coalition has already announced measures to limit tax credits, scrap
the Child Trust Fund, for the part - privatisation of Royal Mail, to scrap National Insurance increases for employers but maintain them for employees, cut by 10,000 the planned extra university places, provide for a greater role for the private sector in «free schools» and a «review» of all employment law to «maximise flexibility» amongst other measures.
One of the motivations of the related policy such as
the Child Trust Fund is clear from this excerpt:
Last week Vince Cable told the Institute of Directors: «We question some welfare payments — like Winter Fuel Payments for pensioners under 65, tax credits and
the Child Trust Fund; public sector pensions, which are running out of control, particularly at the top; not ring fencing spending by government departments which will merely ensure that some really useful spending is cut deeply to protect bureaucrats in other, higher profile, departments.»
In the Fourth Assembly, she holds the position of Deputy Minister for Children & Social Services, with her responsibilities amongst others being childcare,
child trust funds and parenting programmes.
We first received the health in pregnancy grant for # 190 and after his birth we received
the Child Trust Fund.