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CTF are to be scrapped

(87 Posts)
herbietea Mon 24-May-10 11:54:42

Message withdrawn

starshaker Mon 24-May-10 11:56:04

I agree. I have no idea what happened to my dd's other than its lost money. By the time shes old enough to get it, it will be worthless anyway.

Sidge Mon 24-May-10 12:09:19


Ridiculous waste of money IMO.

DD2 gets extra put into hers as she gets higher rate DLA. No doubt that will go against her when they're assessing her liability for contribution towards her care when she's an adult hmm

The money saved will be far better spent elsewhere.

Nick68 Mon 24-May-10 12:13:33

I disagree. Child Trust Funds were designed to ensure that all children have some savings or assets behind them when they reach adulthood. Research shows that even modest amounts of savings can have a big impact on people's chances in life - they provide a cushion against difficult times, or a springboard to opportunity. Better off parents routinely put money aside for their children; the Child Trust Fund was designed to give other children the same kind of help and support. Providers of the funds report that they really encourage savings, even from those on very low incomes who struggle to put money aside for their kids. Over the full 18 years, the funds can really build up - smooothing out the peaks and troughs of the stock market.

If cuts are needed, why not take away some of the billions given in tax relief on pension contributions for the wealthiest? Why should poorer kids pay the cost of the economic crisis?

suitejudyblue Mon 24-May-10 12:15:34

I can't imagine many people will be too upset about this, it was never really sold well. A small saving but at least its a step in thr right direction.

TheCrackFox Mon 24-May-10 12:16:26

Complete waste of money that the country couldn't actually afford.

McDreamy Mon 24-May-10 12:17:44

I take your points Nick but I think at the very least they should be means tested.

mumblechum Mon 24-May-10 12:18:55

Nick, you now have to pay tax on bonuses being paid into pensions, whereas until last year you could bung the whole thing into your pension fund without paying any tax on it, that's now stopped.

I don't care about CTF ds was born too early for that but I can't see £250 making much of a dent in his university expenses.

Meglet Mon 24-May-10 12:19:18

Am not suprised. It was a good idea in principle but went down in my estimation when I realised that 18 year olds could do what they liked with the cash hmm.

I'm thinking of hiding the paperwork for my dc's CTF's so they don't spend it all on beer.

catinthehat2 Mon 24-May-10 12:20:10

Welcome Nick, nice to see a rapid rebuttal unit employee still in a job.

puddock Mon 24-May-10 12:21:19

Seems like a fairly sensible cut, not as controversial as CB, CTC, HiP grant (though I'm sure they'll be hit sooner or later...)
For me, this will mean that DS had £250 but DC2 will only have £50. WWYD, top DC2's up so they're the same, or not bother?

NoahAndTheWhale Mon 24-May-10 12:24:45

So if you have a ctf at the moment, what will happen to it?

Meglet Mon 24-May-10 12:26:50

noah I assume they'll be keeping the ones that are already started. If people have paid into them it would be a PITA dividing up the money / calculating interest confused and who's owed what wouldn't it.

veritythebrave Mon 24-May-10 12:34:49

Message withdrawn at poster's request.

2shoes Mon 24-May-10 12:37:13


BertieBotts Mon 24-May-10 12:43:32

If you want to save £250 for your child by the time they're 18, all you have to do is open a savings account and put in £1.16 a month (or 27p a week). Even on the lowest income, that's not exactly a stretch. It's less than a chocolate bar once a week!

wahwahwah Mon 24-May-10 12:44:14

You are better off starting a pension for your child. No, really, I mean it. If you start now, then there should be a reasonable pot for them to take over when they start work.

WilfShelf Mon 24-May-10 12:46:35

how interesting about a child's pension: how does one go about doing that?

wahwahwah Mon 24-May-10 12:51:23

You need to speak to an IFA. Check

Ask the IFA how they collect their fees - it will be either from you, or as a fee from the provider.

peppapighastakenovermylife Mon 24-May-10 13:15:27

That is really interesting about the pension - never thought about that, presumed it was something they had to do when they were old enough to work!

wahwahwah Mon 24-May-10 14:01:41

It's sad to say, but there will be bugger all in the state pension pot when we get old, let alone our kids!

notnowbernard Mon 24-May-10 14:04:34

On balance probably good they are going

My only problem with it is that I have 2 DC with CTF and 1 due who won't have one

andagain Mon 24-May-10 14:41:18

I disagree. I think they should have made CTF means tested and not applied the broad brush approach to this kind of thing. It sends a message of "well mid and high income earners are fine either way, and the poor? oh well, they just have to lump it". It is unjust in the extreme.

I think that for people who can't afford to put any money aside for their children it is very important to have CTF. Some people will never be able to top it up but those who can every now and then put some money aside will probably be more likely to do it if they have this to start with.

Then again, I also think that the same should be applied to child benefit as a lot of people do not really need it. That should also be spent on those most in need.

But I also think any government should encourage people to care a bit more about those who are less well off then themselves, rather than encourage selfishness.
I do realise I am a bit of a utopian.....

Bramshott Mon 24-May-10 14:45:53

That's pretty expected isn't it.

Does anyone know if the ones we have will continue to work as they do, or whether if you want, you can withdraw the money and put it into a regular savings account?

DD1 has had two payments into hers, so I guess I should put an extra £250 into DD2's to even it out, and then just forget about them until the DDs are 18?!

daysoftheweek Mon 24-May-10 14:49:09

about time

give every 18 year old 500 pounds and you will simply add 500 pounds to the cost of whatever the average 18 year old wants be it a car uni fees beer or a holiday

(and who would give the average 18 year old control over a large sum of money anyway......)

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