Cuts Watch #9: Child Trust Fund
The Coalition Government has announced that it is cutting the entire Child Trust Fund – going further than the plans set out in the Conservative manifesto to retain it for families on the lowest incomes. From 1st August payments will be ‘scaled back’ – reduced to £50 for ‘better off’ families and cut from £500 to £100 for lower income families. Payments for children at age 7 will stop. From 1st January 2011 all payments will stop.
The case for the retention of the fund has been well made – cutting it shows that the Government is doing far more than reducing ‘waste’ . Today’s announcement means that children and families across the country will be worse off. And there is far more to come. While the coaltion have attempted to win positive media coverage by ‘protecting’ spending on schools, Sure Start and education this only applies to today’s ‘in-year’ cuts – families are not protected from future reductions.