Inflation 'could hit CTF savings'
The Share Centre has warned those saving for children that Child Trust Fund (CTF) vouchers may be affected by inflation.
According to the report, children born after September 1st 2002 and before the start of the scheme in April 2005 could have their vouchers, worth £250, topped up to account for any lost growth.
However, since then, a basic £250 is offered to all babies, a situation that may see children lose out when they come to spend their nest eggs, the company said.
Group sales and marketing director Guy Knight said the government seemed "short-sighted" by not keeping CTF contributions in line with inflation.
Citing information from the Office of National Statistics, he said: "If you forecast the difference over the child's 18 years, the government could be looking at a shortfall of over £97 million a year for newborn babies.
"We would urge the government to reconsider the limits."
Last week, Nationwide urged people saving for children to invest CTF vouchers before the expiry date.
