Parents 'do not back' Conservative CTF plans

Wednesday, February 17th 2010

Plans by the Conservative Party to cut the Child Trust Fund (CTF) are not supported by a large majority of parents.

Family Investments has made the revelation following a study of 634 parents.

Of this group, 96 per cent were happy with the CTF scheme and many believed it had encouraged them to save money.

And eight out of ten of them said they did not support the Conservatives' plans.

Chief executive at the organisation John Reeve explained that parents who receive minimum wage would not be eligible for CTF benefits under David Cameron's leadership.

"It is hard-working, low and middle income families who will be really hit by these spending cuts," Mr Reeve claimed.

He added that it "seems very strange" to cut the CTF before any long-term benefits are allowed to occur.

In existence since 2002, the CTF offers children £250 when they are born to start a savings account.

This account cannot be accessed until the child is aged 18 and aims to encourage saving for the future.