lanelli MP urges thousands of Llanelli’s Child Trust Fund generation not to miss out

This week, young people turning 18 will for the first time be able to access their Child Trust Fund accounts, the innovative government-funded savings scheme introduced by the last Labour Government and abolished by the Tories a decade ago.

Child Trust Funds were introduced so that every young person had access to savings and a financial springboard at the start of their adult life, so they had savings they could build on for later in life, or could put down a deposit on a flat, buy a car, start a business or whatever else they chose. Labour wanted to extend to every young person the options that wealthier families took for granted, with bigger initial payments for the children from the least well off backgrounds.

Until David Cameron’s Conservatives axed the scheme in January 2011, the Government invested at least £250 in a fund that only the beneficiary can access, and only when they turn 18.  The money went into an account their parents could open using a voucher sent out by the government – and for children whose parents didn’t use their voucher, the Government set up an account for them.

Parents, grandparents and others could top up the account too. In Wales, the Welsh Labour Government put extra money in when children reached primary school age.  Children with disabilities were entitled to extra annual payments into their Trust Fund from the Government, because of the extra needs young adults with disabilities face.

Llanelli MP, Nia Griffith, said:

“A generation ago, the then Labour government looked ahead to the future of today’s young adults. Young people in Llanelli turning 18 today and for years to come will be the beneficiaries of their foresight and determination to make lives better and society fairer.”

“Here in Llanelli alone, 5,297 Child Trust Fund accounts were opened by parents and 2,468 accounts were created by the government to make sure no-one was left behind. I don’t want any 18 year old to miss out on their child trust fund which is rightfully theirs.”

“HMRC have now made it easier to find your fund: visit https://www.gov.uk/child-trust-funds/ for details. But every parent, every school, and every employer can help in the months and years to come in making sure people who are turning 18 know the money is now theirs to manage and know how they can access funds with which they may have lost touch.”

“Every trust fund, and every choice it enables or makes easier, is a reminder of the difference a competent, caring government can make.”