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Newsletter

Parents 'do not want CFT cut'

By Sarah Engle, Thu 18 Feb 2010 - Published in Banking

The majority of parents do not support proposals by the Conservative Party to reduce child trust funds (CFTs), research has found.

A poll carried out by Family Investments discovered that 96 per cent of parents believe CFTs are a 'good thing, while eight out of ten do not back plans to cut them.

In addition, 72 per cent were not aware of the Conservative Party's proposals to stop families earning more than £16,040 from having the products.

John Reeve, chief executive at Family Investments, said that most people want to see the CFT as a savings vehicles which can be used by all families and pointed out that proposals would prevent those with both families earning the minimum wage from opening one.

"It is hardworking, low and middle-income families who will be really hit by these spending cuts. These are exactly the kind of families who may want to save for their children's future but need the help and encouragement to do so," he commented.

Earlier this month, David White, chief executive of The Children's Mutual, said that the introduction of CTFs revolutionised how parents save for their families, with over half of parents opening a fund on the day of their kid's birth.