For the press
Who we are
We represent a broad alliance - from consumer groups to charities and service providers - who are united in the common belief that Child Trust Funds are an invaluable investment in our children's future. As politicians openly threaten the future of Child Trust Funds, families are rightly concerned about what the future might hold for their children's savings.
The Save Child Savings campaign was created to protect every child's right to the best start to their adult life. You can read more about us on the Who We Are page.
Press contacts
Laura Brodie - 07796 130 854
Sho Konno - 07906 153 469
Political background
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.
Frequently Asked Questions
What is the financial burden on parents when their children reach
18?
The average family spends over £13,500 a year on their child between the ages 18 to 21, more than double the cost spent on them during their early teenage years. But of those families who save, one in four has savings of less than £500. With university aged children quoted as costing their families over £40,000 each, this could mean that some 4.2 million families will have significant amounts of money to find as their children reach adulthood. The Child Trust Fund provides one means for families of today's youngsters to save towards this target over the long term rather than having to find it by other means later on.
What are the levels of debt among current young people turning 18?
Levels of debt for those aged 16-34 are amongst the highest of any group. The average debt owed by an 18 year old is £5,100, whilst the average 25 year old will be in debt for £8,000. Only a small proportion of this debt is covered by a Student Loan, meaning that many of these young people will begin their post education, adult life with bank and credit card debt of over £7,000.
How successful has the Child Trust Fund been?
The Child Trust Fund has been extremely successful to date with 74% of eligible parents actively opening an account for their child. In some areas such as York, Wolverhampton and Reading, take-up rates have been as high as 85%. This is particularly good when compared to the fact that only 62% of families have an alternative savings account.
What would an 18-year old do with the cash?
From the age of 16, young people will have the freedom to interact with and influence their own Child Trust Fund. This involvement, combined with the fact that the main contributors to the scheme will have been their family and friends, makes it likely that an 18 year old will make responsible use of the money at maturity. These young adults will also have benefited from many years of dedicated financial education in their schools - this was a key government commitment when the Child Trust Fund was launched. The universal nature of the Child Trust Fund will have made these classes all the more powerful as the children will have had a personal connection to the lesson.
Having the fund will open up a wide range of possibilities for these young adults - they may choose to put their fund towards a university degree, the minimum cost for which has been estimated at present at almost £10,000 a year or, at the other end of the spectrum, the job they are applying for may need a drivers licence (the average cost of learning to drive is currently estimated at just under £1,000.) The cost of vocational training would fall somewhere between these two.
How many families poor and middle class families would suffer?
There are approximately 3 million families with an income of less that £16,000 and a further 2 million plus families with an income between £16,000 and £50,000 who would suffer if the Child Trust Fund is scrapped. These are the much squeezed ‘middle earners' who want to save for their children's futures and need all the help they can to do this.
Do Child Trust Funds encourage other members of the family to help save?
Child Trust Funds not only encourage increased saving by parents, but also by aunts, uncles, grandparents, all other family members and friends. In fact one in four grandparents pay into a Child Trust Fund or savings account for their grandchildren and industry figures suggest that grandparents contribute £470 million to Child Trust Funds every year.
Do Child Trust Funds help promote savings amongst low-income families?
44% of families on low income have no savings outside of the Child Trust Fund. CTFs help these families to save their limited resources, with over 30% of low income families adding on a monthly basis to their child's Child Trust Fund.
