Govt axing of CTFs branded "a terrible shame"

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Child trust funds (CTFs) have been axed as part of £6.2bn Government cuts.

All payments to CTFs will be scrapped by January, with payments sharply reduced in August, in a move chief secretary to the Treasury David Laws said would save £520m. Laws, who acknowledged the plan will be a "disappointment" to parents, said the process of handing people funds from borrowed money amounted to deception. "It is deceiving people to think we're giving them an asset when we are just borrowing money on the financial markets that our children and children's children will have to pay for," he said. The Government aims to save £320m in the year 2010-2011, rising to £520m i...

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