Child Trust Funds

Public Accounts Committee Closed Inquiry
Opened: 29 Mar 2023 Closed: 24 Sep 2023 Parliament page
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 … Read more
2 Recommendations
24 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 5 events
24 Sep
2023
Report published
26 Jul
2023
Report published
19 Jun
2023
Correspondence
18 May
2023
Oral evidence
18 May
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
18 May 2023
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Child Trust Funds
Anthony Walker · The Share Foundation Emily Antcliffe · HMRC Gavin Oldham · The Share Foundation Jim Harra CB · HM Revenue and Customs
Title HC No. Published Items Response
Sixty-Seventh Report - Child Trust Funds HC 1231 26 Jul 2023 26 Responded
Recommendations & Conclusions
3 results
Clear
8 Conclusion Deferred
Sixty-Seventh Report - Child Trust…
Providers can charge fees up to a cap of 1.5% per year on ‘stakeholder’ accounts,...
Providers can charge fees up to a cap of 1.5% per year on ‘stakeholder’ accounts, the most common type of Child Trust Fund account, which The Share Foundation described as equating to nearly £30 per year on a typical account. … Read more
Government Response
The government agrees with the Committee's observation on CTF provider fees but states that providers have the lead responsibility for terms and conditions, which are industry matters. HMRC will encourage providers via a working group to adhere to their responsibilities under FCA rules, including the new consumer duty for fair value.
HM Treasury
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9 Conclusion Deferred
Sixty-Seventh Report - Child Trust…
Providers are making even more money from some Child Trust Funds in other ways, as...
Providers are making even more money from some Child Trust Funds in other ways, as other types of Child Trust Fund have no cap on fees. Around 1.3 million Child Trust Funds (0.3 million stocks and shares accounts and 1.0 … Read more
Government Response
The government agrees with the Committee's observation on uncapped CTF fees but states that providers have the lead responsibility for terms and conditions, which are industry matters. HMRC will encourage providers via a working group to adhere to their responsibilities under FCA rules, including the new consumer duty for fair value.
HM Treasury
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11 Conclusion Deferred
Sixty-Seventh Report - Child Trust…
We heard that only four providers, out of around 55 in total, have been proactive...
We heard that only four providers, out of around 55 in total, have been proactive and voluntarily worked in partnership with the Tracing Group—a commercial service for tracing the owners of dormant accounts—to set up a Child Trust Fund register … Read more
Government Response
The government agrees with the Committee's observation regarding provider proactivity in tracing accounts but states that CTF providers have the lead responsibility for tracing. HMRC will continue to encourage providers through a working group to adhere to their responsibilities under FCA rules, including the new consumer duty.
HM Treasury
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Government Response AI assessment · 26 of 2 classified
Accepted 18
Acknowledged 1
Deferred 3
Rejected 4
Total 2 recs + 24 conclusions
Correspondence 1 letter
19 Jun 2023 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, HM Revenue and Customs, re Following the hearing on Child Trust Funds on 18 May 2023, dated 7 June 2023
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