CTF opening rates increase to 72%
At this week’s Treasury Select Sub-Committee hearing, Economic Secretary Kitty Ussher MP revealed new figures that show CTF opening rates have increased from 70% to 72% as a result of a renewed effort to increase awareness of and engagement with the scheme.
Crucially, she reaffirmed her commitment to increasing opening rates of CTFs and highlighted the link between parents actively opening accounts and the increased likelihood of them making additional contributions to them over the life of the account.
The Minister focussed on Government initiatives to highlight the scheme to children and parents through the education system and acknowledged the importance of encouraging low income families to add contributions to their children’s account to make the most of the CTF.
TISA Director-General, Tony Vine-Lott said:
‘A key aspect of the CTF is the link between providing a significant asset to a young person turning 18 and getting children and families engaged with financial products. TISA is delighted that the Government has reaffirmed the need not just to get more CTFs opened, but to increase parental contributions once the fund is opened. To this end, providers have had a key role to play with Government to encourage parents to add to their child’s scheme. TISA now looks forward to continued dialogue with Government in order to increase the levels of contributions into CTFs.’
NOTES TO EDITORS:
TISA is the trade association for the retail financial services sector. TISA works to improve tax incentivised savings schemes and promotion of savings in the UK. TISA works closely with industry, parliamentarians, HM Treasury, HM Revenue & Customs and the Financial Services Authority to enhance and improve the range, features, benefits, promotion and quality of savings schemes available to all savers in the UK. These include Individual Savings Accounts, Child Trust Funds, personal pensions, employer-based schemes, and other consumer-centric, Government savings schemes and savings initiatives.
For more information visit www.tisa.uk.com or email enquiries@tisa.uk.com
For more information, please contact: John Rowland, Cicero Consulting +44 207 665 9539 or john.rowland@cicero-europe.com
Tony Vine-Lott, Director General TISA +44 1372 374 728 or 07790 006108 or tony.vinelott@tisa.uk.com