Research conducted by Nationwide Building Society has revealed that UK MPs would like more to be done to ensure that children will have sufficient funds in preparation for their entrance into adulthood, supporting Nationwide's campaign to encourage children's savings.
Worryingly, Nationwide’s research showed that less than half of MPs (45%) believed that the take-up of the Child Trust Fund (CTF) has been a success in their constituencies.
The research indicated that 7/10 MPs want the UK government to become more active in the campaign to increase the take-up of CTF vouchers. It also became apparent that the majority of MPs want equal tax breaks for children who do not qualify for a CTF, something Nationwide has actively campaigned for.
Stuart Bernau, Nationwide executive director, said: The government has made a good start with the introduction of the CTF, highlighting that children’s savings is a priority. But there remains some real unfairness in the way some children are taxed. If we want to encourage further children’s savings we need fair tax treatment for all, whether or not they qualify for the CTF.
The investigation also revealed that 58% of the MPs interviewed agreed that children who were too old for a CTF but too young for an ISA should be eligible for tax-free savings up to a maximum of GBP1,200 a year.
In addition, just over half of the MPs (52%) said that they thought an additional top-up to the CTF at age 11 would improve the savings culture among today’s young people.