Sep 2009 09

The bad joke that is the Government's Child Trust Fund2

The Treasury have proudly announced that they are giving out the first round of payments under the Child Trust Fund, £250 for each seven-year old:

"From this month onwards, children who turn seven will get a £250 birthday boost to their Child trust Fund account. The extra money will benefit 700,000 children per year, with children in lower income families also receiving a further £250."

Who do they think is going to pay for that £250?  Has Alistair Darling found some kind of magic money tree in the gardens at 11 Downing Street?  No, the same children who are being treated under this scheme will pay for the national debt racked up by this and other government policies.

The Spectator CoffeeHouse produced a national debt counter recently, it shows that the national debt is currently around £27,538 per family.  Those seven-year olds might be happy to receive their £250 trust fund but they'll be the ones who have to pay back a debt which is more than a hundred times as large, per family.  By the time the Government are finished, that bill will be a lot higher and, unless aggresive action is taken to cut spending, will mean a huge burden on the children that the Government is today pretending it is providing for.

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  • Hardeep Singh

    I have never really understoof the bally-hoo baout the child trust fund. Whilst I am very eager to advance the welafer of children in any and every way I do take issue with the manner in which it’s done. It’s very true that any so called savings for children will mean little if anything once you take the enormous debt into account.
    I just can’t help wondering why the government doesn’t just cut taxes and then we’ll all have more than £200 per month to save for loved ones. It’s another hugely expensive intiative that bears the hallmarks of silly idealogy and lack of foresight. In todays age a child can get out to work part time and earn more than a respectable wage, so what’s with all these government hadouts?
    No doubt once these trusts mature the government will back again with it’s big book in hand entitled tax and take it all back,it an illusion.

  • Virginia Whinyates

    I never understood the sheer wastefulness of child trust funds. I would prefer the government keep this cash in its own trust fund to finance worthy students through university for degrees in subjects essential to the country’s future – sciences, engineering, medicine and similar. Lets be realistic, most ctf’s will be blown at the age of 18 on drugs, cars, holidays, alcohol, none of which contribute to our nations prosperity