Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Accepted
Share Foundation provides essential financial training to care leavers for Child Trust Funds
Conclusion
The engagement of the Share Foundation to manage Child Trust Funds on behalf of children in care has given a focus to those accounts. The Share Foundation told us about the disciplined handover process it has introduced to ensure that when young people whose accounts it manages approach the age of 18, they are made aware of their account and are offered financial awareness training to help them to manage their savings effectively.39
Government Response Summary
The government agrees with the committee's conclusion, stating the recommendation is implemented. They highlight ongoing evaluation of the CTF scheme, regular quarterly meetings with The Share Foundation, and continuous monitoring of its performance.
Government Response
Accepted
HM Government
Accepted
4.7 The government agrees with the Committee’s recommendation. Recommendation implemented 4.8 HMRC undertakes on-going evaluation of the operational aspects of the CTF scheme based on provider and user comment and research. This information informs changes to both existing and prospective savings schemes. For example, amendments to the CTF legislation is reflected in the Junior ISA and ISA legislation and vice versa. 4.9 The technology landscape has changed significantly for HMRC and the financial services industry since the CTF scheme was developed in 2004, and what was an appropriate operating model then would be unlikely to be employed now. For example, the Lifetime ISA (LISA) which was introduced in 2017 is a digital system which requires monthly on-line reporting by ISA managers and the mandatory use of national insurance numbers. The Help to Save Scheme uses DWP data to confirm eligibility and its use of the government gateway to create account ensures HMRC has email addresses for participants in the scheme. In contrast, the CTF scheme employed paper vouchers for account opening and is dependent on parents informing HMRC and account providers of changes in their personal details, making it challenging to contact account holders. 4.10 In the context of looked after children, quarterly meetings take place between HMRC, the DFE and The Share Foundation (TSF). A meeting took place in August and the next meeting is provisionally scheduled for late Autumn. Those meetings provide the opportunity to explore any obstacles (whether operational or legislative) to TSF’s effective management of the CTFs and Junior ISAs of looked after children. The Share Foundation reports quarterly and annually on its performance and those of local authorities, The regular meetings also provide the opportunity to monitor TFS’s performance, which will subsequently inform any amendments to the commercial contract.