New Report: Child Asset Inequality is Test of Progressive Government
"David Cameron's philosopher" Phillip Blond calls for action on child savings
On Thursday 9th September Phillip Blond, Director of ResPublica launched a report calling for Government to tackle social mobility by adopting a savings policy that builds assets for all children's futures.
The Save Child Savings Alliance - consisting of academics, charities, think tanks and members of the financial industry - welcomed the report's "foremost recommendation to maintain, extend and improve the infrastructure of the Child Trust Fund" as part of any asset building agenda to boost savings.
The CTF is one of the most successful saving schemes ever and the framework can be retained for a small administrative cost. Whilst we acknowledge that Government is unable to make contributions to the scheme in the current economic climate, keeping the structure in place will at least ensure all newborns have a chance of having a savings account opened for them at birth which will improve the life chances of future generations.
Commenting on the report, Julian Le Grand, founder member of the Save Child Savings Alliance and Professor of Social Policy at the London School of Economics, said:
"When it comes to social mobility, a lump sum asset is a lot more powerful than income in unlocking opportunities for youngsters as they enter adulthood. This is particularly vital for less well-off families to help give their children the best start to their adult lives. We must not allow what has been a successful start in fostering a savings culture for all to fall away from the most vulnerable in society."
Dr Katherine Rake, Chief Executive of the Family and Parenting Institute, said:
"The last two years of economic strife have reminded British society of the importance of personal savings. It's imperative that we help ordinary families put money away for a child's future. The Child Trust Fund offers a proven structure for this."
David White, Chief Executive of The Children's Mutual, said:
"The Child Trust Fund ensured that every single newborn child in the UK had a savings account opened for them which they, and only they, could access at the age of 18. With ever increasing day-to-day demands on family savings and reports that university students face debts of £25,000 on graduation, it is critical that we explore ways to protect savings for our children. Whatever their background the next generation should not be forced to start adulthood saddled with debt or as a dependent drain on their parents."
You can read the full report and see some of the media coverage that Save Child Savings Alliance members got here: (including BBC Radio 4's Today Programme and the Daily Telegraph)