TISA disappointed with CTF announcement
TISA – Tax Incentivised Savings Association – is hugely disappointed with today’s announcement by H M Treasury that government contributions to the Child Trust Fund are to be stopped.
Tony Vine-Lott, TISA Director General says:
“Child Trust Funds are fulfilling their objective of creating assets for young adults regardless of their background. Importantly, CTFs also have the potential to significantly improve financial literacy and numeracy and eliminate financial exclusion. It is a massive blow that government contributions into the scheme are to cease and that no new vouchers will be issued from January 1, 2011. TISA will maintain its efforts to persuade H M Treasury that a tax advantaged saving scheme specifically targeted at children is necessary to encourage parents to continue to build a financial nest egg for their child.”
The latest TISA quarterly survey* shows that £17m is being paid each month by Direct Debit into CTF accounts while the total subscribed in lump sum contributions since CTFs were introduced in 2005 now exceeds £149m.
* TISA’s quarterly survey covers the period 16 December to 15 March 2010. Data is supplied by providers representing 73% of all CTF accounts.
Ends
For further information, please contact:Tony Vine-Lott, Director General, TISA – Mobile: 07790 006108Email: tony.vine-lott@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact: Steve Radford, Cauldron Consulting – Tel: 020 3178 7238, Mobile: 07889 903786. Email: steve.radford@cauldron-consulting.com