Savings Accounts and Health in Pregnancy Grant Bill

Part of Parliament (Amendment) – in the House of Commons at 7:01 pm on 26th October 2010.

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Photo of Richard Graham Richard Graham Conservative, Gloucester 7:01 pm, 26th October 2010

The hon. Gentleman is right that this is a short period of history over which to judge them, but the fact remains that the annual management costs for CTFs, at 1.5%, are significantly higher than most of us would need to pay for an alternative form of savings. That will not alter over time. In answer to the suggestion that, in time, parents, families and friends might put more into the accounts, there is nothing to prevent them from opening an ISA or, as the Minister suggested, a new denomination of children's ISA-if one becomes available-in their child's name. Although I think that half the point made by Owen Smith is right, I do not think that the overall impact of CTFs would be positive.