The Financial Secretary to the Treasury (Mr Mark Hoban)
The Government have today laid draft regulations before both Houses, which would reduce Government contributions into child trust funds from August 2010.
The Government announced on 24 May 2010 that they intended to reduce and then stop Government contributions to child trust funds, as part of achieving £6.2 billion of savings from Government spending in 2010-11.
These regulations would reduce Government contributions into child trust funds at birth, and stop Government contributions at age seven, due from August 2010. They would also stop disability payments into child trust funds due from 6 April 2011, but the funding allocated to make disability payments in future years will be redirected to provide additional respite breaks.
The Government will separately introduce a Bill to stop all Government contributions to child trust funds at birth due from January 2011.