Mourning Child Trust Funds

[Fittster]

So anyone want to defend child trust funds that are about to get the chop?

"The new Government has announced plans to scale back payments into Child Trust Funds this year and axe them completely from the start of next year.

David Laws, the Chief Secretary to the Treasury, announced the changes as part of the coalition's plan to save more than £6bn from government spending this year. It is estimated that the abolition of CTFs will save £520m.

The first cuts to the tax-free savings plans will be made on August 1 this year. Any babies born after this date will receive just £50 from the Government to be paid into a CTF plan. Previously the vast majority of families received a £250 voucher."

http://www.telegraph.co.uk/finance/personalfinance...

Not being a parent I couldn't give a stuff.

[Don]

I'm not a parent and hence do not give a stuff.

But as far as I was concerned the whole thing was the government giving with one hand and taking away with the other. £250? Vs University fees? Mwahahahahahaha.

[Eric Mc]

They weren't asked for by the electorate and they always seemed to me a totally gratuitous waste.

Dreamt up by Brown and Balls, no doubt.

Next up should be some axe wielding on the Tax Credit system.

[siscar]

The sooner it's gone the better in my opinion, ludicrous waste of money.

[mcflurry]

£250 was fine, but giving the £500 a certain demographic was ridiculous IMHO.

[JagLover]

Total waste of money and always struck me as ironic that on the 18th birthday they would get a £250 trust fund...........and their £50k share of the national debt to pay off.

[Bing o]

mcflurry said:

£250 was fine, but giving the £500 a certain demographic was ridiculous IMHO.

How else can a 7 year old afford their Lambert and Butler, you cruel bds!

[anonymous-user]

Being a parent i do not give a stuff. Total waste of £££.

[limpsfield]

I am a parent and I don't care

Edited by limpsfield on Monday 24th May 16:59

[dirty boy]

limpsfield said:

I am a parent and I don't care

Edited by limpsfield on Monday 24th May 16:59

Same here, although I took full advantage of the offer. Free money!

[allnighter]

JagLover said:

Total waste of money and always struck me as ironic that on the 18th birthday they would get a £250 trust fund...........and their £50k share of the national debt to pay off.

Well the idea is they would get more than 250 quid if parents saved into the trust fund on a regular basis + interests et al.
Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

[Fittster]

allnighter said:

JagLover said:

Total waste of money and always struck me as ironic that on the 18th birthday they would get a £250 trust fund...........and their £50k share of the national debt to pay off.

Well the idea is they would get more than 250 quid if parents saved into the trust fund on a regular basis + interests et al.
Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

But is there any evidence to suggest that the child trust fund encouraged people to save who wouldn't have done anyway?

[NoelWatson]

allnighter said:

Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

Alternatively, they could stop encouraging everyone to go to University even though not all are suited, and they could raise interest rates to make houses more affordable for the next generation

Edited by NoelWatson on Monday 24th May 17:15

[Justayellowbadge]

allnighter said:

JagLover said:

Total waste of money and always struck me as ironic that on the 18th birthday they would get a £250 trust fund...........and their £50k share of the national debt to pay off.

Well the idea is they would get more than 250 quid if parents saved into the trust fund on a regular basis + interests et al.
Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

The idea of a generation of fiscally unaware teenagers recieving a windfall at 18 was not that brilliant an idea, unless you were the local drum 'n' bass listening, 3 series cab driving, 'entrepeneur'.

[allnighter]

Fittster said:

allnighter said:

JagLover said:

Total waste of money and always struck me as ironic that on the 18th birthday they would get a £250 trust fund...........and their £50k share of the national debt to pay off.

Well the idea is they would get more than 250 quid if parents saved into the trust fund on a regular basis + interests et al.
Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

But is there any evidence to suggest that the child trust fund encouraged people to save who wouldn't have done anyway?

No evidence whatsoever, but it's something you delay and delay before you know years have passed. A cheque for 250 will encourage you to open an account straight away.

[siscar]

NoelWatson said:

allnighter said:

Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

Alternatively, they could stop encouraging everyone to go to University even though not all are suited, and they could raise interest rates to make houses more affordable for the next generation

Yes one of the big cons the Labour Party visited on the younger generation is that it is a good thing to go to university. Queue lots of people with useless qualifications and massive debts.

People with degrees earn more so let's give everyone a degree - you couldn't make it up.

[Legend83]

Just another inconsequential hand-out to win votes.

That £250 would be worthless due to inflation by the time the kid turns 18 anyway (unless I am mis-informed and it gets put in some "index-linked" fund?).

Good riddance.

[allnighter]

NoelWatson said:

allnighter said:

Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

Alternatively, they could stop encouraging everyone to go to University even though not all are suited, and they could raise interest rates to make houses more affordable for the next generation

Edited by NoelWatson on Monday 24th May 17:15

Sorry i don't follow your logic there.

[Legend83]

allnighter said:

NoelWatson said:

allnighter said:

Playing the devil's advocate it's a good idea to encourage parents to save for their children's university fees, deposit for a flat/house or whatever other costs they will face in future .

Alternatively, they could stop encouraging everyone to go to University even though not all are suited, and they could raise interest rates to make houses more affordable for the next generation

Edited by NoelWatson on Monday 24th May 17:15

Sorry i don't follow your logic there.

I think Noel is saying there are other ways to benefit 18 year old's without giving them State hand-outs.

Don't make them think it is the be-all and end-all to go to University to do that 'Theatre Studies' degree and come out 3 years later with no real-life skills and £20k of debt.

[page3]

It was useless.

We initially thought, what a good idea, we can give out the account details to inlaws etc so they can pay in every so often when they felt like it. Nope. Can only pay in by us, by cheque.

So, back to cash and a money box.