Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Thumbs up for child trust funds, but 18-year-olds urge controls on how money is spent

26.08.2005


The Government’s new Child Trust Fund, which helps children save a tax-free cash ‘nest egg’ for their 18th birthday, has broad support from political parties, state departments, think tanks and pressure groups alike, according to new research sponsored by the Economic and Social Research Council (ESRC).



However, today’s 18-year-olds want to see greater restrictions on how the money is eventually spent, says the study led by Professor Andrew Gamble of the University of Sheffield.

Under the scheme, begun in April, all children born on or after September 1, 2002, and qualifying for child benefit, will be given a savings account aimed at providing them with financial assets to draw on as they start out in adult life.


Each child will receive a free kick-start from the Government of at least £250, rising to £500 for families in receipt of full Child Tax Credit. They will get a further sum on their seventh birthday, though how much has yet to be announced.

Relations and friends can boost an account by up to £1,200 per year. When they are old enough, children themselves can learn the saving habit by adding money they receive as gifts or from part-time work.

Professor Gamble said: “The Child Trust Fund is important and unusual because it is the first new universal benefit for 50 years and the first capital grant scheme open to all anywhere in the world.

“The fund is also different because, unlike many government policies, it is long-term, with the money tied up for 18 years. It is clearly aimed at changing attitudes and behaviour.”

Child trust funds are an example of what Professor Gamble calls the ‘new assets agenda’, now a focus for discussion in a growing number of countries. Interest in the UK scheme is particularly high in other English-speaking countries, notably the US, Canada and Australia.

Under the current rules, account holders, once 18, will be free to reinvest the money or spend it as they choose.

The study found that even those politicians, officials and others who would have liked restrictions, accepted this policy given the practicality and undesirability of policing the decisions of account holders.

However, when researchers spoke to 18-year-olds they found them strongly in favour of some sort of restrictions on the use of the grants, especially if, as they hoped, the amounts involved were larger than at present.

Though young people very much supported the principle of capital grants and their potential for helping the less well off, they were also in favour of higher sums than currently envisaged.

The funds are expected to provide a minimum of £1,000, whereas most of the 18-year-olds felt that £10,000 could make a real difference to young people’s lives.
At the other extreme, they regarded a suggestion of £50,000 as being too much for young people to handle responsibly.

Top of their list for what to spend the money on was higher education, followed by a car, starting a business or saving for a deposit on a home.

The one notable difference between the sexes – apart from one young woman who wanted to spend £50,000 on her wedding - was that female groups more often raised the issue of providing for childcare.

Becky Gammon | alfa
Further information:
http://www.esrcsocietytoday.ac.uk
http://www.esrc.ac.uk

More articles from Social Sciences:

nachricht Fixating on faces
26.01.2017 | California Institute of Technology

nachricht Internet use in class tied to lower test scores
16.12.2016 | Michigan State University

All articles from Social Sciences >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Stingless bees have their nests protected by soldiers

24.02.2017 | Life Sciences

New risk factors for anxiety disorders

24.02.2017 | Life Sciences

MWC 2017: 5G Capital Berlin

24.02.2017 | Trade Fair News

VideoLinks
B2B-VideoLinks
More VideoLinks >>>