Sixty-Seventh Report - Child Trust Funds

Select Committee
Public Accounts Committee HC 1231 26 July 2023
Report Status Government responded
Conclusions & Recommendations 26 items (2 recs)
Source View on Parliament website
Government Response (AI assessment · 26 of 26 classified)
Accepted 18
Acknowledged 1
Deferred 3
Rejected 4
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Sixty-seventh report from Session 2022-23 · published 24 Sep 2023
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Recommendations & Conclusions

3 results
8 Conclusion Deferred
Providers can charge fees up to a cap of 1.5% per year on ‘stakeholder’ accounts,...
Conclusion
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 Summary
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
Providers are making even more money from some Child Trust Funds in other ways, as...
Conclusion
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 Summary
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
We heard that only four providers, out of around 55 in total, have been proactive...
Conclusion
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 Summary
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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