As part of £6.24bn in savings outlined today by Chancellor George Osborne and the Chief Secretary to the Treasury David Laws, contributions under the scheme will be reduced at birth and stopped for seven-year-olds.
From January 2011, payments will be stopped for all children from birth. Laws said the fund adds to the national debt.
At present the child trust fund is based on the claim that children build up an asset they can use later in life, Laws said. "Instead it is storing up debts to be repaid by the same young people," he added. "It is a deception to claim children are being made richer."
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here
