CHILD TRUST FUNDS

Early day motion 925, tabled 1 November 2010 by Valerie Vaz (Labour). Signed by 25 members.

That this House notes with alarm the Government's decision to abolish child trust funds for all children born after January 2011; acknowledges the success of the Child Trust Fund scheme in nurturing a savings culture and providing a future fund for young people, be it for university fees, accommodation, driving lessons, or expenses while undertaking an apprenticeship, for example; further acknowledges that 2 billion is currently held in child trust funds, and that 74 per cent. of these accounts were opened voluntarily by parents; recognises child trust funds as a progressive tool of social mobility, and of particular value to disadvantaged children; further notes that the cost of child trust funds is only 525 million a year, and that this figure is small compared with the money that could be raised from even modest bank levies; and calls on the Government urgently to reconsider the abolition of these effective savings funds.

Signatures by party: Labour 20, Social Democratic and Labour Party 3, DUP 1, Independent 1.