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Amendment Paper as at
Tuesday 3rd February 2004

CONSIDERATION OF BILL


CHILD TRUST FUNDS BILL

NEW CLAUSES

Early withdrawal, etc, for disabled children

   

Mr David Cameron
Mr Oliver Letwin
Mr Howard Flight
Mr George Osborne
Mr Peter Atkinson

NC1

To move the following Clause:—

    '(1)   If this section applies to a child, the responsible person may withdraw funds from the child's account in accordance with the provisions of this section.

    (2)   This section applies to a child if—

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

(b) a person is, or persons are, entitled to Disability Living Allowance in respect of the child.

    (3)   A responsible person shall inform the relevant account provider if this section applies to a child trust fund.

    (4)   The account provider must inform the Inland Revenue of information provided in accordance with subsection (3).

    (5)   A responsible person may, after having informed the relevant account provider in accordance with subsection (3), apply to withdraw amounts from the fund, including the whole amount of the fund, for expenditure for one or more of the purposes specified in subsection (7).

    (6)   On receipt of an application, the account provider must—

(a) release the amount requested to be withdrawn, and

(b) inform the Inland Revenue in accordance with regulations.

    (7)   Those purposes are—

(a) the purchase or hire of equipment for use by the child in respect of their disability;

(b) payment for nursing, night or child care;

(c) payment for respite care or temporary residential care; and

(d) payment for any specialist medical or palliative service in respect of the child's disability.

    (8)   The responsible person shall, wherever practicable, consult the disabled child about the expenditure of amounts withdrawn in accordance with the provisions of this section.

    (9)   Regulations may prescribe—

(a) the means by which account providers and the Inland Revenue are informed about the application of this section to a child, and

(b) requirements for the provision of information to the Inland Revenue relating to expenditure of amounts withdrawn in accordance with the provisions of this section.'.


Early withdrawal in case of terminal illness

   

Mr Oliver Letwin
Mr Howard Flight
Mr George Osborne
Mr Peter Atkinson

NC2

To move the following Clause:—

    '(1)   If this section applies to a child, the responsible person may withdraw funds from the child's account in accordance with the provisions of subsections (4) and (5).

    (2)   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)(a), and

(c) it is certified by a consulting physician in accordance with regulations under subsection (3) that the child has a terminal illness.

    (3)   Regulations may prescribe the requirements for the issue of a certificate for the purposes of subsection (2)(c).

    (4)   A responsible person may, having given a certificate to the relevant account provider, apply to withdraw amounts from the fund, including the whole amount of the fund.

    (5)   On receipt of the certificate and application, the account provider must—

(a) release the amount requested to be withdrawn, and

(b) inform the Inland Revenue in accordance with regulations.

    (6)   The responsible person shall, wherever practicable, consult the child about the expenditure of amounts withdrawn in accordance with the provisions of this section.

    (7)   In this section—

 "attending physician" means the physician who has primary responsibility for the care of the child and the treatment of the child's illness;

 "consulting physician" means a consultant physician practising in the National Health Service who is qualified by speciality to make a professional diagnosis and prognosis regarding the child's illness and who is independent of the attending physician;

 "physician" means a registered medical practitioner; and

 "terminal illness" means an illness which, in the opinion of the consulting physician, is inevitably progressive, the effects of which cannot be reversed by treatment (although treatment may be successful in relieving symptoms temporarily) and which will be likely to result in the child's death before his eighteenth birthday.'.


Opening by responsible person without voucher

   

Mr Oliver Letwin
Mr Howard Flight
Mr George Osborne
Mr Peter Atkinson

NC3

To move the following Clause:—

    '(1)   In the case of each child who is first an eligible child by virtue of section 2(1)(a) and was born on or before 31st August 2002 a responsible person may apply to the Inland Revenue, in a manner prescribed by regulations, to open a child trust fund account.

    (2)   Upon receipt of an application, the Inland Revenue must give the responsible person concerned written authorisation to open a child trust fund account.

    (3)   A responsible person may, by giving the written authorisation to an aoccount provider, apply to open for the child with the account provider a child trust fund of any description provided by the account provider.

    (4)   On receipt of the authorisation the account provider must—

(a) open, in accordance with regulations, a child trust fund of that description for the child and

(b) inform the Inland Revenue in accordance with regulations.'.


Reduction of age of majority in respect of child trust funds

   

Mr Oliver Letwin
Mr Howard Flight
Mr George Osborne
Mr Peter Atkinson

NC4

To move the following Clause:—

    '(1)   For the purpose of any contact 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.

    (3)   Subsections (6) and (7) of section 1 shall apply to the provisions of this section as they apply to the provisions of that section.

    (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;".'.


Designation of responsible person by young parents

   

Mr Oliver Letwin
Mr Howard Flight
Mr George Osborne
Mr Peter Atkinson

NC5

To move the following Clause:—

    '(1)   This section applies to a person who has parental responsibility in relation to a child who is under the age of 18 or, in Scotland, 16 (person A).

    (2)   Person A may designate another person (person B) who is over the age of 17 or, in Scotland, 15 as the responsible person in relation to the child for whom person A has parental responsibility.

    (3)   Person B must inform the Inland Revenue that he has been designated as the responsible person in respect of the child.

    (4)   Regulations may prescribe—

(a) the required method of designation under subsection (2),

(b) any requirements relating to person B informing the Inland Revenue under subsection (3), and

(c) the circumstances in which person B shall cease to act as responsible person on or after the day on which person A reaches the age of 18 or, in Scotland, 16.'.


Additional contributions by Inland Revenue for children in care

   

Mr Oliver Letwin
Mr Howard Flight
Mr George Osborne
Mr Peter Atkinson

NC6

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 calculated so as to represent a percentage of the average value of subscriptions to child trust funds made during the preceding financial year.

    (4)   On receipt of 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).'.


Prohibition on publicity in pre-election period

   

Mr David Laws
Norman Lamb

NC7

To move the following Clause:—

    '(1)   The Government shall not advertise or publicise by the distribution of leaflets or other literature the introduction of child trust funds during the pre-election period.

    (2)   In this section, the "pre-election period" means the 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.'.



 
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