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The above table shows the number of accounts (in thousands) opened by HMRC broken down by the year of birth and government office region of the child. The numbers have been rounded to the nearest thousand.
Child trust funds help to build the savings habit of future generations, contribute to financial education and will ensure that at age 18, every child will have access to their own financial asset. Over 4 million children now have a child trust fund account.
Lord Myners: There are three types of child trust fund (CTF) accountsstakeholder, cash and non-stakeholder shares accounts. Parents can choose which type of account to invest their childs money in, and can transfer between account types at any time.
The Government have put in place a number of rules for stakeholder CTF accounts. The child trust fund regulations require CTF providers to diversify the investments within a stakeholder account. They also require assets held in child trust fund accounts to be moved into investments with lower risk and return profiles when the child reaches 13. This process, known as lifestyling, will further reduce the risk of investing in equities as CTF accounts reach maturity. Furthermore, account charges on stakeholder CTF accounts are capped at a maximum of 1.5 per cent per year.
To ask Her Majesty's Government what estimate they have made of the number of HM Revenue and Customs-invested child trust funds that are now
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To ask Her Majesty's Government what are the Government rules in place to help reduce risk on stakeholder child trust fund accounts, as set out on the child trust fund website; and what assessment they have made of their effectiveness. [HL2830]
Lord Myners: The child trust fund regulations require CTF providers to diversify the investments within a stakeholder account. They also require assets held in child trust fund accounts to be moved into investments with lower risk and return profiles when the child reaches 13. This process, known as lifestyling, will further reduce the risk of investing in equities as child trust fund accounts near maturity.
The child trust fund is designed as a long-term investment and the first accounts will not mature until 2020. Therefore at this stage it is too early to assess the effectiveness of rules to reduce risk in stakeholder accounts.
To ask Her Majesty's Government what proportion of child trust funds opened by HM Revenue and Customs have been invested in (a) stakeholder accounts, (b) shares accounts (non-stakeholder), and (c) savings accounts (non-stakeholder). [HL2827]
Lord Myners: Information on the number of child trust funds opened in each year since 2003 by HM Revenue and Customs is set out below. This is also available in table 2 of the Child Trust Fund Statistical Report 2008 which can be found at the following address at www. hmrc.gov.uk/ctf/statistical-report-2008.pdf.
|Vouchers used by financial year of birth|
|Date of birth of child and voucher value||Vouchers issued||Accounts opened by parents||Accounts opened by HM Revenue & Customs or not yet opened|
The Parliamentary Under-Secretary of State, Department for Children, Schools and Families (Baroness Morgan of Drefelin): Young carers are a devolved issue. We are seeking the data for Wales, Scotland and Northern Ireland from the offices of the devolved Administrations. The information they provide will be forwarded as soon as it is available.
In relation to England, the 2001 census, which is the only source of nationally comparable data on the number of carers of all ages, indicated that the total number of young carers aged under 16 was 90,000. A breakdown of the data for the English regions and their local authority areas is provided in the table attached.
|The number of young carers aged under 16 in England in 2001 Year: 2001|
|Number of carers aged under 16|
|Notes: Numbers have been rounded to the nearest 1,000 if they exceed 1,000 and to the nearest 100 otherwise. Numbers for three local authorities have been suppressed and replaced in the table with a hyphen (-) due to low numbers.|
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