Five facts for families
1. The average family spends over £13,500 per year on their child between the ages 18 to 21, more than double the cost spent on them during their early teenage years. That is exactly why the next generation needs savings of their own as they become adults.
2. There are approximately 3 million families with an income of less that £16,000, and another 2 million families on incomes up to £50,000, who will lose out if the Child Trust Fund is scrapped. These are not cuts that would only hit the rich few. It would hurt not only the poorest but those on average incomes as well.
3. Of those families who save, one in four has savings of less than £500. These are the families who would suffer most if the Child Trust Fund was taken away, leaving them with even fewer savings and removing a potential safety net.
4. 44% of low-income families in particular have no savings except for their Child Trust Fund - and 30% of them add to their child's Child Trust Fund on a monthly basis, even though they are the families with the least spare cash.
5. Levels of debt are among the highest of any group for those aged 16-34. Taking away the Child Trust Fund would mean the majority of the next generation also starting their adult life saddled with debt from day one. Politicians and commentators are all keen to talk about the national debt crisis and how to deal with it. But as well as removing government contributions into Child Trust Funds in order to save money, the Coalition also plans to scrap the whole scheme.
There is no reason to do this - it does not make sense.
CTFs are already helping over 5 million children and their families build a financially stable future and reduce the personal debt of the next generation. And more and more accounts are being opened every day.
Families with young children need more help to save - not to have their best means of doing so cut from under them.