child trust fund will be discarded completely in January a new child tax free savings account must be submitted as a compensation for the loss of the child trust fund contributions.Junior (ISAs) individual savings accounts will be locked in funds until the child reaches adulthood.
But unlike the trust fund children, no there is no Government contribution in savings pot each child.
The Government hopes that the new system will be implemented in a year, the communes has been informed.
Saving the new accounts will be similar to the adult version of the savings account individual (ISA) that there is an annual limit of contributions and investments can be made by species or stocks and shares.They can be run by private providers and the Government will not publicly.
In may, coalition announced that it has been progressively its contributions to child trust funds, which were established by the labour to encourage parents to save for their enfants.Idée Labour Government was for children to have some savings at the age of 18 years, to help with costs such as the financing of the University.
Before may, parents of newborn children received a good £ 250 minimum invest for their children, who had access to money from the age of 18 ans.Un extra payment was made when the child reaches the age of seven.
These payments have been greatly reduced in August but payments will end entirely from January, to save the Government 320 m £ this year and £ 500 m in future years.
When he announced the end of the contributions, Government has suggested that it would still be a program aimed at encouraging a nest - egg for children, who are likely to see increased costs for higher education and housing.
"I am committed to ensuring that all parents can save for the future of their children in a simple and direct, account", said the Financial Secretary to the Treasury Board Mark Hoban, announcing the new junior ISA plan.
"The introduction of this new medium of account that we can offer even people a clear way of saving for their children, while saving half billion pounds per year that we currently spend on child trust funds".
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