Home / Sources / Select Committees / Public Accounts Committee / Child Trust Funds
Index live · Last sync 22 May 2026
Select Committee · Public Accounts Committee

Child Trust Funds

Status: Closed Opened: 29 Mar 2023 Closed: 24 Sep 2023 2 recommendations 24 conclusions 1 report

A Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011, which they can access when they turn 18. The government paid more than £2 billion into CTFs for 6.3 million children born during this period. Most children received around £250 each from the …

Clear

Reports

1 report
Title HC No. Published Items Response
Sixty-Seventh Report - Child Trust Funds HC 1231 26 Jul 2023 26 Responded

Recommendations & Conclusions

4 items
15 Conclusion Sixty-Seventh Report - Child Trust Funds Rejected

HMRC inaccurately considers Child Trust Fund scheme ended despite its ongoing active status.

HMRC regards the Child Trust Fund policy as having “ended in 2011”, and as an “old scheme” as opposed to an existing scheme.22 This is despite the scheme being very much live, as most young people who benefitted from the scheme have not yet reached the age at which they …

Government response. The government disagrees with the Committee's observation that HMRC views the CTF scheme as 'ended' or 'old'. It reiterates its commitment to ensuring all children and families can access matured CTFs and believes existing savings frameworks address the underlying policy …
HM Treasury
16 Conclusion Sixty-Seventh Report - Child Trust Funds Rejected

HMRC demonstrates insufficient curiosity regarding Child Trust Fund scheme's impact on financial literacy.

HMRC saw its role as setting up of the accounts and transferring government funding into them, which it believes it did effectively.24 The Child Trust Fund scheme’s policy objectives also include helping people understand the benefits of saving and investing; encouraging parents and children to develop the habit of saving …

Government response. The government disagrees with the Committee's concern regarding HMRC's role in financial education related to CTFs. It asserts that existing policies like Help to Save, Junior ISA, and Lifetime ISA, alongside statutory PSHE and guidance from MAPS, adequately address financial …
HM Treasury
17 Conclusion Sixty-Seventh Report - Child Trust Funds Rejected

HMRC lacks dedicated funding and effective partnerships to achieve Child Trust Fund objectives.

HMRC made clear its view that the duty to implement the policy was not fully its responsibility. HM Treasury has not given HMRC dedicated funding for the scheme. The Share Foundation believes that HM Treasury is not allowing HMRC to do more with Child Trust Funds, despite some in HMRC …

Government response. The government explicitly rejects the recommendation, stating it believes the existing policy framework for savings (Help to Save, Junior ISA, Lifetime ISA) and current collaborative efforts already address the need for financial education and access to funds.
HM Treasury
18 Conclusion Sixty-Seventh Report - Child Trust Funds Rejected

Child Trust Funds risk becoming a neglected legacy product with high fees.

We are concerned that Child Trust Funds will become another example of a legacy financial product that is not given the necessary attention by government to succeed against its aims over the long-term. We have noticed in other projects that legacy products often have very high fees because they are …

Government response. The government explicitly rejects the recommendation (even though it's a conclusion), stating it remains committed to ensuring access to CTFs and addresses barriers through cross-government collaboration. It then explains its broader policy framework for encouraging savings through other schemes like …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
18 May 2023 Anthony Walker · The Share Foundation, Emily Antcliffe · HMRC, Gavin Oldham · The Share Foundation, Jim Harra CB · HM Revenue and Customs View ↗

Correspondence

1 letter
DateDirectionTitle
19 Jun 2023 — Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, H…