Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

In our first Sector Spotlight of the year we explore UK equities on the back of the extreme market turbulence in 2016.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter