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
4 results
Clear
15 Conclusion Rejected
Sixty-Seventh Report - Child Trust…
HMRC inaccurately considers Child Trust Fund scheme ended despite its ongoing active status.
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 … Read more
Government Response
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.
HM Treasury
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16 Conclusion Rejected
Sixty-Seventh Report - Child Trust…
HMRC demonstrates insufficient curiosity regarding Child Trust Fund scheme's impact on financial literacy.
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; … Read more
Government Response
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.
HM Treasury
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17 Conclusion Rejected
Sixty-Seventh Report - Child Trust…
HMRC lacks dedicated funding and effective partnerships to achieve Child Trust Fund objectives.
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 … Read more
Government Response
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.
HM Treasury
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18 Conclusion Rejected
Sixty-Seventh Report - Child Trust…
Child Trust Funds risk becoming a neglected legacy product with high fees.
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 … Read more
Government Response
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.
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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