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Mr. Osborne: Will the announcement be made to the House?
The hon. Member for Tatton and other Members raised the way in which older siblings are treated, and whether they could be given the same child trust fund vehicle as children who will benefit from Government endowments. We have looked at that extremely carefully, and I am disappointed to tell the House that the administrative burden on providers of allowing all children from previous cohorts to benefit from an identical tax-free vehicle is disproportionate to the benefits that would be offered. Providers would have to monitor and track the accounts of all children. We would require returns on all accounts, and the Inland Revenue would need much larger IT systems. There could be 10 million extra accounts, and it would certainly not be possible to deliver such a change in time for the launch of the child trust fund.
Mr. Michael Jabez Foster: Is that not a problem anyway? As time goes on, greater numbers will apply, so in 18 years' time people would have to deal with that volume of applications in any event.
Ruth Kelly: My hon. Friend is righta greater number of children will have such accounts over time, but providers have made it quite clear that the scheme needs to be phased in. That does not preclude re-examination of the issue in future, but we would not be able to deliver the policy according to the present time scale if accounts were open to all previous cohorts.
I shall deal in more detail with the issue of fortnightly returns raised by my hon. Friend the Member for Dumbarton. We judged that a fortnightly turnaround was necessary to ensure that money is paid into the accounts as quickly as possible once they are open. We were particularly mindful of the fact that growth and interest should be maximised for all account holders. I did not want people to miss out because financial services providers were not making a return quickly enough to the Inland Revenue.
In conclusion, the Government are committed to an active welfare strategy founded on the principles of security, opportunity and responsibility. That
framework underpins the proposals of the child trust fund. In future, all children will have the security of the backing of a financial asset at the start of their adult life. Having a financial asset will encourage a positive outlook on life and enable more young people to take advantage of opportunities. As for responsibility, developing the savings habit early in life will promote greater independence and self-reliance in adulthood. The child trust fund is a foundation on which we can build. There is a genuine challenge to meet in delivering financial education that will achieve greater understanding about saving and investment, what it involves and how to go about it. In future years, I am sure that the policy will evolve, not just so that local authority providers can use it to look after looked-after children to a greater extent, but, to take on board the point made by the hon. Member for Witney, so that we can assist in more creative ways the most vulnerable people in our society.The child trust fund is the key to achieving a genuine change in people's ability and willingness to save for the future so that they can make the most of opportunities as they arise. It will go further and help to equip children to make better financial choices, not just about savings and investment but throughout their lives. The child trust fund is a leading example of progressive universalism, creating a policy that will benefit all children, while also making sure that greater resources go to those who need most help. I am proud that the Government are introducing this radical and far-sighted policy, and I commend the Bill to the House.
Question put, That the Bill be now read a Second time:
The House divided: Ayes 297, Noes 39.
AYES
Ainger, Nick
Ainsworth, Bob (Cov'try NE)
Allen, Graham
Anderson, Janet (Rossendale & Darwen)
Atherton, Ms Candy
Atkins, Charlotte
Austin, John
Bailey, Adrian
Baird, Vera
Banks, Tony
Barnes, Harry
Barron, rh Kevin
Battle, John
Bayley, Hugh
Beckett, rh Margaret
Beggs, Roy (E Antrim)
Bell, Stuart
Benn, rh Hilary
Bennett, Andrew
Berry, Roger
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Blunkett, rh David
Bradley, rh Keith (Withington)
Brennan, Kevin
Brown, rh Nicholas (Newcastle E Wallsend)
Browne, Desmond
Bryant, Chris
Burden, Richard
Burgon, Colin
Burnham, Andy
Byers, rh Stephen
Caborn, rh Richard
Cairns, David
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Campbell, Ronnie (Blyth V)
Caplin, Ivor
Casale, Roger
Caton, Martin
Cawsey, Ian (Brigg)
Challen, Colin
Chapman, Ben (Wirral S)
Clapham, Michael
Clark, Mrs Helen (Peterborough)
Clark, Dr. Lynda (Edinburgh Pentlands)
Clark, Paul (Gillingham)
Clarke, rh Charles (Norwich S)
Clarke, rh Tom (Coatbridge & Chryston)
Clarke, Tony (Northampton S)
Clelland, David
Clwyd, Ann (Cynon V)
Coffey, Ms Ann
Cohen, Harry
Coleman, Iain
Colman, Tony
Connarty, Michael
Cook, Frank (Stockton N)
Cooper, Yvette
Cousins, Jim
Crausby, David
Cruddas, Jon
Cummings, John
Cunningham, Jim (Coventry S)
Cunningham, Tony (Workington)
Darling, rh Alistair
Davey, Valerie (Bristol W)
David, Wayne
Davidson, Ian
Davies, rh Denzil (Llanelli)
Davies, Geraint (Croydon C)
Davis, rh Terry (B'ham Hodge H)
Dawson, Hilton
Dean, Mrs Janet
Denham, rh John
Dhanda, Parmjit
Dobbin, Jim (Heywood)
Dobson, rh Frank
Donohoe, Brian H.
Doran, Frank
Dowd, Jim (Lewisham W)
Drew, David (Stroud)
Dunwoody, Mrs Gwyneth
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Ellman, Mrs Louise
Ennis, Jeff (Barnsley E)
Etherington, Bill
Farrelly, Paul
Field, rh Frank (Birkenhead)
Fitzpatrick, Jim
Fitzsimons, Mrs Lorna
Flint, Caroline
Flynn, Paul (Newport W)
Follett, Barbara
Foster, Michael (Worcester)
Foster, Michael Jabez (Hastings & Rye)
Foulkes, rh George
Gapes, Mike (Ilford S)
Gardiner, Barry
George, rh Bruce (Walsall S)
Gerrard, Neil
Gilroy, Linda
Goggins, Paul
Griffiths, Jane (Reading E)
Griffiths, Win (Bridgend)
Grogan, John
Hain, rh Peter
Hall, Patrick (Bedford)
Hamilton, David (Midlothian)
Hamilton, Fabian (Leeds NE)
Hanson, David
Harris, Tom (Glasgow Cathcart)
Havard, Dai (Merthyr Tydfil & Rhymney)
Healey, John
Henderson, Doug (Newcastle N)
Henderson, Ivan (Harwich)
Hendrick, Mark
Hepburn, Stephen
Heppell, John
Hermon, Lady
Hesford, Stephen
Heyes, David
Hill, Keith (Streatham)
Hinchliffe, David
Hood, Jimmy (Clydesdale)
Hope, Phil (Corby)
Hopkins, Kelvin
Howarth, George (Knowsley N & Sefton E)
Howells, Dr. Kim
Hoyle, Lindsay
Hughes, Beverley (Stretford & Urmston)
Humble, Mrs Joan
Hurst, Alan (Braintree)
Iddon, Dr. Brian
Illsley, Eric
Irranca-Davies, Huw
Jackson, Helen (Hillsborough)
Jenkins, Brian
Johnson, Alan (Hull W)
Johnson, Miss Melanie (Welwyn Hatfield)
Jones, Helen (Warrington N)
Jones, Jon Owen (Cardiff C)
Jones, Kevan (N Durham)
Jones, Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Joyce, Eric (Falkirk W)
Keeble, Ms Sally
Keen, Alan (Feltham)
Keen, Ann (Brentford)
Kelly, Ruth (Bolton W)
Kemp, Fraser
Khabra, Piara S.
Kidney, David
Kilfoyle, Peter
King, Andy (Rugby)
Knight, Jim (S Dorset)
Kumar, Dr. Ashok
Ladyman, Dr. Stephen
Lawrence, Mrs Jackie
Laxton, Bob (Derby N)
Lazarowicz, Mark
Lepper, David
Leslie, Christopher
Levitt, Tom (High Peak)
Lewis, Terry (Worsley)
Liddell, rh Mrs Helen
Linton, Martin
Llwyd, Elfyn
Love, Andrew
Lucas, Ian (Wrexham)
Luke, Iain (Dundee E)
Lyons, John (Strathkelvin)
McAvoy, Thomas
McCabe, Stephen
McCafferty, Chris
MacDonald, Calum
McDonnell, John
MacDougall, John
McFall, John
McGuire, Mrs Anne
McIsaac, Shona
McKechin, Ann
McNamara, Kevin
McNulty, Tony
McWilliam, John
Mahmood, Khalid
Mahon, Mrs Alice
Mallaber, Judy
Mann, John (Bassetlaw)
Marris, Rob (Wolverh'ton SW)
Marshall, David (Glasgow Shettleston)
Meale, Alan (Mansfield)
Michael, rh Alun
Milburn, rh Alan
Miliband, David
Miller, Andrew
Mitchell, Austin (Gt Grimsby)
Mole, Chris
Moonie, Dr. Lewis
Moran, Margaret
Morley, Elliot
Mountford, Kali
Mudie, George
Mullin, Chris
Munn, Ms Meg
Murphy, Denis (Wansbeck)
Murphy, Jim (Eastwood)
Naysmith, Dr. Doug
O'Brien, Mike (N Warks)
O'Hara, Edward
Olner, Bill
Organ, Diana
Osborne, Sandra (Ayr)
Owen, Albert
Pearson, Ian
Perham, Linda
Picking, Anne
Pickthall, Colin
Plaskitt, James
Pond, Chris (Gravesham)
Pound, Stephen
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Primarolo, rh Dawn
Prosser, Gwyn
Purchase, Ken
Purnell, James
Quin, rh Joyce
Quinn, Lawrie
Rapson, Syd (Portsmouth N)
Robertson, Angus (Moray)
Robertson, John (Glasgow Anniesland)
Robinson, Geoffrey (Coventry NW)
Roche, Mrs Barbara
Rooney, Terry
Ruane, Chris
Ruddock, Joan
Russell, Ms Christine (City of Chester)
Salter, Martin
Sarwar, Mohammad
Savidge, Malcolm
Sawford, Phil
Sedgemore, Brian
Sheridan, Jim
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, rh Chris (Islington S & Finsbury)
Smith, Geraldine (Morecambe & Lunesdale)
Smith, John (Glamorgan)
Southworth, Helen
Spellar, rh John
Spink, Bob (Castle Point)
Starkey, Dr. Phyllis
Steinberg, Gerry
Stewart, David (Inverness E & Lochaber)
Stinchcombe, Paul
Stoate, Dr. Howard
Stringer, Graham
Stuart, Ms Gisela
Sutcliffe, Gerry
Tami, Mark (Alyn)
Taylor, rh Ann (Dewsbury)
Taylor, Dari (Stockton S)
Taylor, David (NW Leics)
Thomas, Gareth (Clwyd W)
Thomas, Simon (Ceredigion)
Timms, Stephen
Tipping, Paddy
Todd, Mark (S Derbyshire)
Touhig, Don (Islwyn)
Trickett, Jon
Turner, Dennis (Wolverh'ton SE)
Turner, Dr. Desmond (Brighton Kemptown)
Turner, Neil (Wigan)
Twigg, Derek (Halton)
Vis, Dr. Rudi
Wareing, Robert N.
Watts, David
Weir, Michael
White, Brian
Whitehead, Dr. Alan
Wicks, Malcolm
Williams, rh Alan (Swansea W)
Wills, Michael
Winnick, David
Winterton, Ms Rosie (Doncaster C)
Woodward, Shaun
Woolas, Phil
Worthington, Tony
Wright, Anthony D. (Gt Yarmouth)
Wright, David (Telford)
Wright, Tony (Cannock)
Tellers for the Ayes:
Gillian Merron and
Vernon Coaker
NOES
Allan, Richard
Beith, rh A. J.
Bottomley, Peter (Worthing W)
Brake, Tom (Carshalton)
Breed, Colin
Brooke, Mrs Annette L.
Bruce, Malcolm
Burnett, John
Burstow, Paul
Cable, Dr. Vincent
Calton, Mrs Patsy
Campbell, rh Menzies (NE Fife)
Carmichael, Alistair
Chidgey, David
Davey, Edward (Kingston)
Foster, Don (Bath)
Harris, Dr. Evan (Oxford W & Abingdon)
Heath, David
Holmes, Paul
Hughes, Simon (Southwark N)
Jones, Nigel (Cheltenham)
Keetch, Paul
Kirkwood, Sir Archy
Lamb, Norman
Laws, David (Yeovil)
Moore, Michael
Oaten, Mark (Winchester)
Öpik, Lembit
Sanders, Adrian
Smith, Sir Robert (W Ab'd'ns & Kincardine)
Stunell, Andrew
Taylor, Matthew (Truro)
Thurso, John
Tonge, Dr. Jenny
Tyler, Paul (N Cornwall)
Webb, Steve (Northavon)
Wilkinson, John
Williams, Roger (Brecon)
Willis, Phil
Tellers for the Noes:
Bob Russell and
Richard Younger-Ross
Question accordingly agreed to.
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