Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Gov’t lifts ban on child trust fund transfers

Gov’t lifts ban on child trust fund transfers

The government is to lift the ban on transfers from child trust funds (CTFs) to Junior ISA, according to the Daily Mail.

Chancellor George Osborne (pictured) said the move ‘supports hard-working families who want to save for their children’.

‘I’m delighted that, as a result of these changes, over six million children who currently have savings in a child trust fund will be able to benefit from better returns and lower charges on those savings,’ he added.

The move follows pressure from campaigners to unlock the funds, after the coalition government scrapped the £250 payment to newborns into the funds. CTFs were replaced with Junior ISAs, which do not attract a state contribution, leaving providers with little incentive to provide the best returns on the obsolete accounts. Some providers have also introduced higher charges on CTFs.

Danny Cox, head of financial planning at Hargreaves Lansdown, said: 'This is great news. This change will pave the way for a significant improvement in choice and outcomes for over 6 million children and ultimately lead to a full merger.

'Transfers should happen from April 2015 and in the meantime, parents and grandparents who are saving into child trust funds for their children or grandchildren should continue to do so.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Wealth Manager on Twitter