Citing aspiration and choice, chancellor Gordon Brown has officially launched CTFs today by pegging 17 January as the starting date for a series of television, radio and print advertisements making parents aware of the new product.
Some 75 providers and distributors are on-board for the start of the CTF regime, something Brown says is a “good start” to the government’s goal of enabling children to own assets and foster a “savings culture”.
CTF accounts would alter the existing situation whereby some 80% of children had no savings, he says.
Two million vouchers will be sent in the first batch of CTF mailouts to eligible children born as of 1 September 2002 – the government will add interest to the first cash injection for those who have been eligible since that date, but have not yet received the money.
The government also confirmed through minister for children Margaret Hodge that the focus of the government’s message on uses of the money saved by a child’s 18th birthday would include “further education”, as well as “a deposit for a house”, travel or purchasing items.
Eligible children from the poorest families will be guaranteed at least £2,000 from government through the initial higher £500 payment and a planned additional £500 payment when they reach the age of seven – subject to nationwide consultation on the age 7 top-up.
Paymaster general Dawn Primarolo adds the payment into CTF accounts shows “the government is investing in each life point of the child…to ensure anti-child poverty targets are met.”
During a question and answer session following the launch, Brown has refused to comment on questions regarding recent press speculation suggesting a lack of trust in prime minister Tony Blair, something some commentators say bodes ill given the word “Trust” in Child Trust Fund.
Providers and distributors so far announced by the Treasury as part of the CTF regime launched today are as follows:
|Abbey National Pep & Isa Managers||Abbey National Pep & Isa Managers|
|Ancient Order of Foresters Friendly Society||Ancient Order of Foresters Friendly Society, Foresters Friendly Society, Teddy Trust|
|Britannia Building Society||Britannia Building Society|
|F&C Management||F&C Management|
|Family Equity Plan||Family Investments|
|Furness Building Society||Furness Building Society|
|Halifax Investment Fund Managers||Halifax Financial Services|
|Hanley Economic Building Society||Hanley Economic Building Society, The Hanley|
|Homeowners Investment Fund Managers||Child Trust Fund.Com, Homeowners, Homeowners Friendly Society|
|HSBC Trust Company (UK)||HSBC|
|Independent Order of Oddfellows Kingston Unity Friendly Society||Kingston Unity Friendly Society|
|Ipswich Building Society||Ipswich Building Society|
|Liverpool Victoria Portfolio Managers||Liverpool Victoria|
|National Westminster Bank||NatWest|
|Nationwide Building Society||Nationwide Building Society|
|Pilling & Co||Pilling & Co Stockbrokers|
|Police Mutual Assurance Society||Police Mutual Assurance Society, PMAS, Police Mutual|
|Redmayne Bentley||Redmayne Bentley|
|Royal Bank of Scotland||Royal Bank of Scotland|
|Scottish Friendly Asset Managers||Scottish Friendly Asset Managers|
|The Share Centre||The Share Centre|
|Skipton Building Society||Skipton Building Society|
|Tunbridge Wells Equitable Investments Company||The Children’s Mutual|
|Ulster Bank||Ulster Bank|
|Walker Crips Stockbrokers||Walker Crips Stockbrokers|
|Yorkshire Building Society||Yorkshire Building Society|
|Allied Irish Bank||Axa Life|
|Baby Welcome||Barclays Bank Plc|
|Blue Stripe Financial Services||Boots The Chemists|
|Bounty||Chelsea Building Society|
|Cheshire Building Society||Civil Service Insurance Society|
|Co-operative Insurance Society||Coventry Building Society|
|Cumberland Building Society||CW Friendly Society|
|David Newton & Co||Derbyshire Building Society|
|Dunfermline Building Society||First Trust Bank|
|Grindeys Solicitors||Hargreaves Lansdown|
|Kenneth Bush Solicitors (IFA)||Leeds Holbeck Building Society|
|Leek United Building Society||Lloyds TSB|
|Loughborough Building Society||Lupton Fawcett|
|Melton Mowbray Building Society||Mothercare|
|NAAFI Financial||NAAFI Financial (Cyprus)|
|NAAFI Financial (Germany)||National Childbirth Trust Charity|
|National Deposit Friendly Society||Newcastle Building society|
|Norwich And Peterborough Building Society||Nottingham Building Society|
|P.O.I.S. (Post Office Insurance Society)||Principality Building Society|
|Progressive Building Society||Robinsons Solicitors|
|Sainsbury's Bank||Stroud Swindon Building Society|
|Teachers||Universal Building Society|
|West Bromwich Building Society|
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