Child Trust Funds: restriction of government contributions
The measure
The Government announced on 24 May 2010 that it intends to reduce and then stop
all government contributions to Child Trust Funds. Subject to legislation, the
Government intends to reduce government contributions at birth, and to stop
government contributions at age 7, from August 2010.
The Government also intends for HMRC to stop issuing new Child Trust Fund
vouchers from 1 January 2011.
Who will be affected?
Children eligible for Child Trust Funds will be directly affected by the proposed measures.
When?
There is no immediate effect on Child Trust Funds. Legislation is required to implement the Government's intentions and until that legislation is in place Child Trust Funds will continue as usual.
This is one of many measures the government has introduced with a view to reducing Britain's deficit.
