TISA welcomes Government action to build upon the success of CTF
The Economic Secretary’s announcement today of further, targeted measures to promote CTF is welcome news. The initiatives closely follow measures advocated by TISA and its member firms.
Firstly, TISA believes that involvement of voluntary and community organisations in assisting parents and relatives with making the initial investment decision will be a great help to getting children off to a good start with their CTF. TISA knows that for some parents, the choices involved with investing for the long-term might seem somewhat intimidating at first. Through the support of trusted third parties, this decision can be made much easier.
Secondly, TISA has long-advocated that reminder letters be sent to parents and guardians. This reminds new parents—most of whom have so many conflicting demands on their time—of the importance of investing their child’s CTF voucher at the earliest opportunity to get the best results.
Thirdly, TISA appreciates that HM Treasury and HMRC have listened to provider concerns about the requirement for submission of the physical voucher to open accounts. TISA raised this issue in its 2007 Pre-Budget Submission and looks forward to working with HMRC on the forthcoming consultation with providers.
Taken together, progress in these areas will enhance the success of the CTF and provide better outcomes for children and families. The Government’s initiative is already off to a very good start—as evidenced by the second annual CTF Report released alongside these recommendations.
TISA Chairman, John Brasington said,
‘TISA, as the industry voice for CTF, is delighted by the Government’s announcement today. Their commitment to making CTF a success is demonstrated by these measures and the constructive dialogue with industry which continues nearly every day. Refinements of burdens on families and industry, like removing the need for a physical voucher, combined with other major outreach initiatives like training voluntary and community organisations will make a real difference today for children and families and their shared future.’
Notes to editors:
TISA is the leading trade body for CTFs and tax incentivised savings. It has worked with the Government to develop and implement the CTF. This is the second quarterly CTF survey it has conducted.
TISA wants to remind parents and their families that every eligible child could benefit from tax free saving of £1200 per year to build into a nest egg for them when they reach 18 years of age. If parents have questions or concerns, they should call or contact their CTF provider or contact the Government’s information helpline on 0845 302 1470 or by visiting www.childtrustfund.gov.uk.
For more information:
John Brasington, Chairman, TISA
07971280315
or
Jacob Coy, Cicero Consulting
020 7665 9535
079 0039 2531