Subject to legislation, the Government intends to reduce government contributions from £250 to £50 to children in better off families and from a total of £500 to £100 to children in lower income families. It will also stop all government contributions at age 7 and HMRC will stop issuing new Child Trust Fund vouchers from January 2011.
Commenting on the changes, Gavin Littlejohn, CEO of Money Dashboard says:
“The Government’s decision to reduce contributions to Child Trust Funds is bad news for families, particularly those on low incomes who will yet again lose out if only the wealthy can afford to start saving for their child’s future.
“However, it is important that people remember to claim what they are entitled to and invest it wisely. The Government has issued over 1 million Child Trust Fund vouchers that are still valid but haven’t been used. Any family sitting on a £250 voucher should invest it immediately to avoid any potential for losing out on tax-free savings and interest for their child. While the voucher should still be valid after April next year, that could easily change, particularly if providers close their Child Trust Funds to new business and withdraw from the market.”
Money Dashboard is a free online personal finance service for the UK consumer. It brings a person’s bank accounts, credit cards and store cards together in one service - giving a clear up to the minute picture of their personal finances.
http://www.moneydashboard.com
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About Money Dashboard
Money Dashboard is a free online personal finance service for the UK consumer. It brings a person’s bank accounts, credit cards and store cards together in one service - giving a clear up to the minute picture of their personal finances.
Consumers can access it from any PC and by spending just ten minutes a week it allows them to track spending, set budgets and helps them save. It will also in due course send email alerts of budget overspend, suspicious transactions or important events.
Independent of banks, building societies and lending organisations, Money Dashboard is the consumer’s friend. It puts people in control of their finances and helps them identify suitable products and ways to save.
Money Dashboard was founded by CEO Gavin Littlejohn and is backed by a heavy weight management team including Non Executive Chairman Stuart Sinclair, former CEO of Tesco Personal Finance and David Robinson, founder and former CEO of Bright Grey.
