One year since the first vouchers were sent out to parents, just overhalf have been cashed in. Although that still leaves almost one millionchildren whose parents missed last week's deadline for opening anaccount, they will have an account opened on their behalf by theGovernment. But it reveals that not all parents are as engaged as we hadhoped.
The Government has laid a foundation with huge potential to tackleinequality.
But that does not mean it can put off thinking about how the policyshould develop over the next 18 years until the first accounts can becashed.
Three main challenges remain. One is to make sure the fund works forchildren whose parents cannot afford to save as much as others. TheGovernment plans to top up the funds of children from families whoseannual income is less than 13,000 with 500 at age seven,and 250 for the rest. However, in families where parents can maketheir own regular contributions, they will quickly dwarf theGovernment's top-ups, so these need to be rebalanced so the poorestchildren get more.
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