You are here: Home - Investing -

Budget 2013: Child savings ‘offered a lifeline’

0
Written by:
20/03/2013
The Chancellor is expected to offer a lifeline to six million children by allowing savings in child trust funds to be switched into more generous junior ISAs.

George Osborne will make the announcement, which will unlock £4.8bn in child trust funds, in his Budget Statement later today, The Daily Mail reports.

Parents and grandparents contributed thousands of pounds to child trust funds on the back of promises from the last Government that they would prove ideal long-term investments for their child. But Coalition austerity measures meant the £250 being paid to every newborn to start a fund was stopped and the trust funds scrapped, to be replaced by Junior ISAs with no state contribution, The Mail says.

Those with a child trust fund – children born between September 1, 2002, and January 2, 2011 – have not been entitled to open a Junior ISA or transfer their cash to one.

Child trust funds have been in decline since 2011 seeing millions trapped in expensive products or suffering lower interest rates than their junior ISA counterparts

The Chancellor is expected to announce a 12 week consultation to allow the transfer of child trust funds to junior ISAs.

Danny Cox, head of financial planning at Hargreaves Lansdown, said:

“Common sense has broken out at last. This consultation will pave the way for a significant improvement in choice and outcomes for over 6 million children and should ultimately lead to a full merger.”

 

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
The gloomiest Budget ever? Osborne demands £2.5bn more cuts

George Osborne has asked Whitehall departments to make a further £2.5bn of cuts, as he prepares to present a gloomy...

Close