Source · Select Committees · Public Accounts Committee
Sixty-Seventh Report - Child Trust Funds
Public Accounts Committee
HC 1231
Published 26 July 2023
Conclusions (4)
15
Conclusion
Rejected
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 Summary
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 objectives.
16
Conclusion
Rejected
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 Summary
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 literacy objectives.
17
Conclusion
Rejected
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 Summary
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.
18
Conclusion
Rejected
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 Summary
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 Help to Save, Junior ISAs, and Lifetime ISAs.