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Social mobility and the Child Trust Fund

11th November 2009 Print

As David Cameron highlighted during his speech - The Big Society - social mobility remains a key challenge in the development of the UK.

 

An absolutely critical step in improving social mobility is helping parents to save for their children's futures in order to give them every possible opportunity to fulfil their potential.  Be it for further training, a first car, tertiary education or improving their own housing and job opportunities, a financial asset could help provide a spring board into adult life for millions.

 

Over 4.6 million children in the UK now have a Child Trust Fund (CTF) account and almost £2 billion has already been saved into these for children's futures. These statistics demonstrate the success of the CTF and the positive impact it will have on social mobility as it enables and encourages families to save for a better future for their children and leads future generations away from poverty.

 

74 per cent of families have proactively opened a Child Trust Fund account to save for their child's future.

 

30 per cent of lower income families pay monthly into their child's CTF.

 

Families in the lowest income bracket save a higher proportion of their household income for their children than those in more affluent groupings.

 

David White, Chief Executive of The Children's Mutual, said: "Eradicating poverty and giving all children the best we can is an important goal and we welcome the Conservatives focus on achieving this. Whilst there is still progress to be made we want to highlight the efforts made by many families to save for their children's futures over the past five years since the launch of the Child Trust Fund.  The CTF was conceived to level the playing field and give all children a tangible financial asset when they turn 18.

 

"In 2020 the first children of the CTF generation will begin their adult lives with money to put towards fulfilling their goals and achieving their ambitions.  This money will help shape their futures,. The CTF will then be playing the role it was designed for by allowing individuals to bridge some of the social divides that exist in the UK."

 

For further information please visit thechildrensmutual.co.uk.