In May, Chancellor George Osborne and the then Chief Secretary to the Treasury David Laws said the government would stop all payments to Child Trust Funds from January 2011.
The funds were set up by the Labour government on the basis that they would be an asset that children could build up and use later in life. But Laws said the fund added to the national debt.
However, the Treasury has now started an informal consultation on how savings for children can be encouraged, including whether or not the government should introduce tax-free savings accounts.
A Treasury spokesman said: "The government is committed to encouraging saving. We are currently discussing with relevant stakeholders the possibility of introducing a tax-free children’s savings account."
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
