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Proposed Child Trust Fund cuts leave parents fuming

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by David Masters
Proposed Child Trust Fund cuts leave parents fuming

Middle class parents are outraged at plans by the Conservative Party to limit Child Trust Funds (CTFs) to the poorest families if they win the next election.

Research by Family Investments found that eight in ten parents do no support the plans, announced by shadow chancellor George Osbourne earlier this month.

The study found that 96% of parents think CTFs are a “good thing”, with many pointing out that it had encouraged them to save for their child’s future.

Family and friends can open a CTF when a child is born, and can continue putting money into it until the child reaches 18.

When a CTF is opened, the government currently puts £250 into the fund.

A further £250 is given by the government after seven years.

The Conservative’s proposals would limit this money from the government to families with a combined annual income of under £16,040.

John Reeve, chief executive at Family Investments said: “The CTF has a lot of support from parents who do not want to see the scheme changed.

“More than 80 per cent still believe that all newborn children should remain eligible for the CTF, rather than restricting the vehicle to parents with a household income of £16,040 or less.

“If the Conservative’s plans were implemented it would mean that children whose parents were on minimum wage would not qualify for the CTF.”

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News posted: February 19, 2010

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