Reduction in child trust funds and child tax credits

[haoshiji]

At-a-glance: Cameron coalition's policy plans

news.bbc.co.uk/1/hi/uk_politics/election_2010/8677088.stm

Reduction in child trust funds and child tax credits

Bah!

What happens to existing CTFs? We pay all of the DSs child benefit into one every month. Do we have to transfer it all into another savings scheme?

if we hadn't been given the money we probably wopuld have procrastinated about setting up a savings account for the DSs.

We have a combined income of approx 47k. I get £40 a month tax credit. I don't need this money, I have enough spare money every month to buy myself new clothes, shoes, etc. Hubby has enough spare money to save over 1k a month!!! I don't think I should be getting £40 a month of tax-payers money. Think how many households across the country are in my situation.

I hope they do cut CTC to people of my income level and I hope I stop getting it.

So presumably the existing CTF's will remain as untouchable accounts with no government top-ups until the 18 years are done? Or will the CTF accounts be closed and we will have to transfer the funds accrued to independant trust accounts etc? (Ok, DS's "fund" is approx £800 so not a huge amount lol).

Can see the sense of getting rid to be honest- it's a just another drain on an already stretched purse.

Actually that sounded flippant- £800 is a huge amount for us really as I'm damn sure we wouldn't have been able to save it independantly without the start-up etc.

stripeyknicker noone forced you to apply for it

Stripeyknickers - will you're alright then Jack aren't you.

stripeyknickers - imagine you had this income on one salary and paid higher rate tax. your disposable income would be less and you might be glad of tax credits.

stripeyknickers - I take it you don't live in the south east.

I am concerned how it will affect those of us who were over-paid tax credits. We have a combined income of 41k and if we are suddenly not eligable for tax vredits will that mean they suddenly demand back the 4k we owe them? (which is currently being recovered by us not recieving the 500 quid we're entitled to?)

I am worried because even though it may sound like we have a good income, after rent, bills and childcare, there is enough left over for food and mothing else.

qwerty999 why do you have to put a minimum of £25 p/m in? I put £15 p/m in each of my kids' CTF as it's all we can afford. You can do regular payments of as little as £10 I believe. I do think CTF is a bit of a gimmick that couldn't really be afforded. Ditto CTC for higher earning families.

StrictlyTory, no you're right nobody did force me to apply for it. That's not the point though, there are thousands of people in my position who do have it and don't need it. Maybe I should stop having it, will it make a big difference to the nation's defecit if I forgo my £40 a month?

Monty27 - yes I am alright thanks. Hopefully if they change the system of CTC to make it fairer, there will be more money for people who aren't alright.

CTF was always pointless, in my opinion. Nothing is stopping anyone from opening up an account for their child and contributing to it.

I also support cutting child tax credit for people who arguably don't really need it, in favour of those who do.

I don't think there has been any suggestion of cutting vouchers. (since Labour backed down)

I'm not a fan of Zoe Williams' writing about kids but this is interesting reading here, I think... or just really depressing now...

I completely disagree with the article.

As a very low income single mum; my DD would be better served - if the government was to insist on spending the money they put in her CTF on her - if they were to use it for something else for her/children.

If they really really wanted to give her the money in some way I would prefer:
Cash
Vouchers for sports/music/similar lessons through the LA
Extending the healthy start vouchers to give us discounts on our healthy shopping despite me getting WTC
or similar type things

Or they could put together the money from all the CTF in the area to be spent on:
youth services so the fantastic adventure play scheme doesn't end up being shut down and they could open things for teenagers
SEN services in schools
Funding uni places

I'm quite capable of saving for DD when I can afford it without a voucher to make me do it.

Stupid scheme, IMO.

But stripey you don't think you should have it, you say you don't want it but you went to the trouble of filling in pages and pages of forms and renewing it every year something doesn't ring true.

Just because you can get something doesn't mean you have to you know.

I have to say that I think scrapping the CTF is a good idea.

DS1 was one of the first children to have one (born September 2002, 2 weeks after they were introduced). But we had decided long before that to open a bond of some kind for him, and we did as soon as he was born even though we didn't get the voucher from the government until many months later.

It didn't make a scrap of difference to us, we would have saved for our children regardless of whether the government was trying to encourage us or not. No doubt those people who wouldn't bother saving or can't afford to will just leave the £250 in there, and it won't be worth a great deal when the child turns 18.

I think that encouraging people to save is a good thing, but I don't think that this scheme necessarily does that.

Child tax credits are complex and expensive to administer. Virtually every family in the UK is now means tested.

The system needs reforming. I have returned to work and my husband has lost his job in a short period of time. The child tax credit people cannot keep up with all the changes going on with our family.

A family on 40K does not need means tested handouts. In fact I fail to see why a family on 30K needs mean tested benefits. It is ridiculous and raising the tax threshold is a far cheaper way of helping all working families.

Get rid of CFT and Health in Pregnancy grant NOW. Low-income people on benefit already qualify for Sure Start Grants of £500, we don't need to hand out £190 to everyone who is pregnant.

CTF was a good idea in principle. Children who reach 18 with nothing behind them are terribly disadvantaged in comparison with those who do - in terms of getting themselves access to accomodation, education etc - and completely dependent on parental support - which just might not be there.

In practise though it was absurdly complicated, not enough to make much difference, and just another tax break for the better off.

And CTC - pages and pages of forms! And so bloody complicated!

So nothing terrible so far, but there's going to be much, much worse to come, I fear.

Very happy to see CTF go - the money can be better spent.

Am very concerned about child care vouchers though, the salary sacrifice scheme for paying for childcare. Dave said on MN he'd keep them but Nick said he'd get rid since CTC is all you need, and the LibDems are the one's charged with finding areas to make cuts.

In fact the threatened abolition of Childcare vouchers was THE reason I and my colleagues couldn't vote LibDem. We're key workers who can't afford to live closer to work and have commuting costs of about £350-£450 a month and pretty high childcare too meaning once bills are paid, there's very little, if any, disposable income. If they childcare vouchers go it makes no financial sense for me to carry on working.

Agree with DinahRod - Am also very worried about the Childcare Vouchers scheme - they are the only way paying for nursery care for 2 DC is viable. Not eligible for the 15 hrs 'free' nursery education for my 3 yr old either due to different rules in certain parts of Wales