Vote Bundle Text (940113-05)

Amendments proposed to the Child Trust Funds Bill - continued	House of Commons

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Mr George Osborne
Mr Peter Atkinson

100

Clause 31, page 16, line 18, leave out 'Child Trust Funds' and insert 'Baby Bonds'.

NEW CLAUSES

Funds for children other than eligible children

Mr George Osborne
Mr Peter Atkinson

NC1

To move the following Clause:—

'(1) The provisions of this section apply to a child if the child was born after 31st August 1992 and before 1st September 2002 and either—

(a)	a person is entitled to child benefit in respect of the child, or

(b)	entitlement to child benefit in respect of the child is excluded by the provisions specified in subsection (2)(a) or (b) (children in care of authority),

but subject as follows.

(2) The provisions referred to in subsection (1)(b) are—

(a)	paragraph 1(c) of Schedule 9 to the Social Security Contributions and Benefits Act 1992 (c. 4) and regulations made under it, and

(b)	paragraph 1(1)(f) of Schedule 9 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) and regulations made under it.

(3) The provisions of section 2(3) to (6) shall apply to eligibility under this section as they apply to eligibility under that section.

(4) Regulations may amend subsection (1) by substituting for the reference to 1st September 2002 a reference to an earlier date.'.

Additional contributions by Inland Revenue for children in care

Mr George Osborne
Mr Peter Atkinson

NC2

To move the following Clause:—

'(1) If this section applies to a child the Inland Revenue must inform the account provider with whom a child trust fund is held by the child that this section applies to the child.

(2) If the account provider makes a claim to the Inland Revenue in accordance with regulations, the Inland Revenue must pay to the account provider such amount as is prescribed by regulations.

(3) The amount prescribed by regulations under subsection (2) shall be expressed as a percentage of the current rate of child benefit.

(4) On receipt of the payment the account provider must credit the child trust fund with the amount of the payment.

(5) This section applies to a child if—

(a)	a child trust fund is held by the child, and

(b)	the child was first an eligible child by virtue of section 2(1)(b).'.

Income disregard for purposes of income-related benefits, etc.

Mr George Osborne
Mr Peter Atkinson

NC3

To move the following Clause:—

'(1) In determining the matters specified in subsection (2), no regard shall be had of income and gains arising on—

(a)	Inland Revenue contributions to,

(b)	subscriptions to, and

(c)	investments under

a child trust fund.

(2) Those matters are—

(a)	eligibility for,

(b)	entitlement to, and

(c)

levels of

the benefits and credits specified in subsection (3) in respect of the holder of a child trust fund.

(3) The following are specified in this subsection—

(a)	child tax credit,

(b)	Council Tax benefit,

(c)	housing benefit,

(d)	income support,

(e)	income-based jobseeker's allowance, and

(f)	working tax credit.'.

Reduction of age of majority in respect of child trust funds

Mr George Osborne
Mr Peter Atkinson

NC4

To move the following Clause:—

'(1) For the purpose of any contract entered into in respect of a child trust fund, the age of majority shall be 16.

(2) The Family Law Reform Act 1969 (c. 46) is amended as follows.

(3) After section 1 insert—

"1A Reduction of age of majority in respect of child trust funds

(1) For the purposes of any matter specified in subsection (2) which relates to a contract entered into in respect of a child trust fund, a person shall attain full age on attaining the age of sixteen.

(2) Those matters are-

(a)	any rule of law, and

(b)	the construction (in the absence of a definition or of any indication of a contrary intention) of the expressions listed in section 1(2) and similar expressions in—

(i)	any statutory provision, whether passed or made before, on or after the date on which this section comes into force; and

(ii)	any deed, will or other instrument of whatever nature (not being a statutory provision) made on or after that date.

(4) In this section 'child trust fund' has the meaning given by section 1(2) of the Child Trust Funds Act 2004."

(4) In section 28(4) (extent), after paragraph (a) insert—

"(aa)

section 1A extends to Northern Ireland;".'.

Report on savings effect of child trust funds

Mr David Laws
Norman Lamb

NC5

To move the following Clause:—

'The Treasury shall lay before each House of Parliament a report setting out the Treasury's estimate of the net increase in saving which will result from the provisions of this Act.'.

Report on savings incentives

Mr David Laws
Norman Lamb

NC6

To move the following Clause:—

'The Treasury and the Department for Work and Pensions shall lay before each House of Parliament a joint report on the Government's policies to improve savings incentives from birth to retirement.'.

Proposals for conversion of child trust funds to tax-advantaged accounts for retirement saving

Mr David Laws
Norman Lamb

NC7

To move the following Clause:—

'The Treasury shall lay before each House of Parliament a report setting out proposals for child trust fund accounts to become, on maturity, tax-advantaged accounts for retirement saving.'.

Income disregard for purposes of benefits and tax credits

Mr David Laws
Norman Lamb

NC8

To move the following Clause:—

'The value of a child trust fund will be wholly disregarded with respect to the calculation of entitlement to all benefits and tax credits in respect of—

(a)	the parents of children holding child trust funds,

(b)	children holding child trust funds, and

(c)	persons holding child trust funds who are aged 18 or over.'.

Subscriptions and deprivation of capital

Mr David Laws
Norman Lamb

NC9

To move the following Clause:—

'Subscriptions to child trust funds shall not be considered to constitute deprivation of capital in respect of entitlement to any benefits, tax credits or pensions credit.'.

Investment information and advice from Inland Revenue

Mr David Laws
Norman Lamb

NC10

To move the following Clause:—

'(1) The Inland Revenue shall provide summary information on investment options and risks to all those responsible for managing child trust fund accounts.

(2) But the Inland Revenue shall not itself offer any advice on which account types or providers should be selected.

(3) If the Inland Revenue can be shown to have offered advice which has resulted in investment losses then it shall be legally liable for such losses.'.

Prohibition on advertising in pre-election period

Mr David Laws
Norman Lamb

NC11

To move the following Clause:—

'(1) The Government shall not advertise the introduction of child trust funds during a pre-election period.

(2) In this section, a "pre-election period" means any period that—

(a)	starts with—

(i)	the calling of a General Election by the Prime Minister, or

(ii)	the day that falls twenty-five days before any Parliament shall cease to have continuance in accordance with the provisions of the Septennial Act 1715 (1 Geo 1 Stat 2 c 38),

whichever is the earlier, and

(b)	ends with the day of the ensuing General Election.'.

Determination of Inland Revenue contributions

Mr Andrew Robathan

NC12

To move the following Clause:—

'(1) Any regulations under section 8(1) or 10(1) determining the amount of Inland Revenue contributions shall prescribe amounts intended to secure that, on the basis of the assumptions specified in subsection (2), the total value of an average child trust fund account on the date of maturity is approximately equal to the likely average level of annual student course fees on that date estimated in accordance with the provisions of subsections (3) and (5).

(2) Those assumptions are that—

(a)	the average annual rate of return on accounts will be 7 per cent., and

(b)	no subscriptions will be made to accounts.

(3) The Secretary of State shall, no later than 1st March 2005, lay before each House of Parliament a report setting out his estimate of the likely average level of annual student course fees for the dates of maturity specified in subsection (4) based on—

(a)	the level of such fees then expected to be in force on 1st October 2007, and

(b)	the Treasury's estimate of the change in the value of money between 1st October 2007 and each of the dates of maturity specified in subsection (4).

(4) Those dates of maturity are those for children born—.

(a)	between 1st September 2002 and 31st August 2003,

(b)	between 1st September 2003 and 31st August 2004, and

(c)	between 1st September 2004 and 31st August 2005.

(5) The Secretary of State shall, no later than 1st March 2006 and no later than 1st March of every year thereafter, lay before each House of Parliament a report setting out his revised estimate of the likely average level of annual student course fees for the dates of maturity specified in subsection (6) based on—

(a)	the level of such fees then expected to be in force on 1st October in the year after that in which the relevant report is laid ("the relevant day"), and

(b)	the Treasury's estimate of the change in the value of money between the relevant day and each of the dates of maturity specified in subsection (6).

(6) Those dates of maturity are—

(a)	those specified in subsection (4),

(b)	those for children born in the year ending with 31st August of the year in which the report is laid, and

(c)	those for children born in the year ending with 31st August of the year in which any previous report has been laid in accordance with the provisions of subsection (5).

(7) In this section—

"course" does not include any part-time or postgraduate course other than a course of initial teacher training;

"the date of maturity" means the date on which the person holding a child trust fund account is first able to withdraw funds from the account; and

"student course fees" means fees in respect of, or otherwise in connection with, undertaking a course, including admission, registration, tuition and graduation fess but excluding—

(a)	fees payable to an institution for awarding or accrediting any qualification where the institution does not provide the whole or part of the course and is not a publicly-funded institution,

(b)	fees payable for board or lodging,

(c)	fees payable for field trips (including any tuition element of such fees), and

(d)	fees payable for attending any graduation or other ceremony.'.