Nov 2 2006
Child trust fund (CTF) provider The Children's Mutual has expressed its backing to the announcement by Ed Balls that it will be possible to convert the funds into individual savings accounts (Isas) upon reaching adulthood.
Upon the introduction of the CTF, HM Treasury stated that the funds could mature into the tax-advantaged savings vehicles available at the time.
In a speech this week, Mr Balls, the economic secretary to the Treasury, stated that the Isa scheme would be extended, meaning that it will be possible to roll over CTFs into the savings plans upon maturity.
David White, chief executive of The Children's Mutual, said: "We recommended this move in a consultation paper some time ago and it is great to see the government listening to and working alongside providers."
The group believes the move will enhance the savings culture it claims the introduction of the CTF has introduced.
Mr Balls was speaking this week at the Pep and Isa Manager's Association 2006 annual conference.
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