Child Trust Fund will save young adults from sea of debt
David White, Chief Executive of The Children's Mutual, said: "We're surprised and disappointed by Mr Osborne's statement today. If it is the intention to create a savings culture in this country we must preserve the Child Trust Fund for all families.
"Research suggests that this is the one thing that is really getting savings moving again. In this period of record indebtedness the Child Trust Fund has become the savings vehicle of choice for families looking to provide a better future for their children. Quite clearly this would reverse that trend. We are reporting record opening of savings accounts and overall increases in saving. We believe the evidence shows that this is the most successful savings product ever.
"The Child Trust Fund has trebled the savings rate for children by families.
"More than two million parents are using the CTF to make monthly contributions.
"Amongst our customers those contributions have risen by 60% from £15 to £24.
"Many of today's young adults are drowning in a sea of debt and are further away than ever before from being able to afford education, to get on the property ladder or advance themselves.
"We predict that if, on average, £0.5 billion is being invested each year in Child Trust Funds this would result in an anticipated £2.4 billion being available to young adults which would make a huge difference to the Nation's level of indebtedness.
"We need to pull future generations from the sea of debt. Removing the most successful savings initiative ever at this juncture will condemn the young people of the future to the same fate as today's generation."