Government CTF Reforms Demanded by Share Centre

By Peter Wakeford
Published on 20 Aug 2008
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Government CTF Reforms Demanded by Share Centre

The £250 voucher which launches each fund should be boosted to £288 to keep up with inflation, the firm says.

Child Trust Fund (CTF) vouchers should rise in value in line with inflation, the Share Centre has said.

The firm is currently lobbying against the current legislative situation with the funds, which see parents of new-born children given a £250 voucher by the government. This sum can then be put into an investment fund of the family's choice, to be accessed when the child turns 18.

However, the Share Centre pointed out today that this £250 voucher has not changed in value since CTFs were launched in 2005, which means that parents receiving them today are getting a lump sum worth less than those who received them three years ago.

With inflation hitting a 16-year high of 4.4 percent, this situation could worsen still further in the future.

Guy Knight, group sales and marketing director at the Share Centre, explained: "While it is great that children are given this financial start in life, it is not fair that children born today will get £145 less after inflation than their predecessors in the course of the scheme. We calculate babies born today should receive £288 to give them the same start in life."

He added: "It seems short-sighted of the government to hinder the investment potential of future generations. We would urge the government to reconsider the limits and keep them in line with inflation so that every child has a fair and equal starting point for their investments."

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