HC Deb 10 May 2001 vol 368 cc281-2W
Mr. Plaskitt

To ask the Chancellor of the Exchequer how many families he expects to benefit from the new children's bond in the first year of its introduction. [159877]

Mr. Mackinlay

To ask the Chancellor of the Exchequer what estimate he has made of the cost of the proposed grant to children at birth. [159882]

Dawn Primarolo

In late April the Government announced a consultation on two new proposals to encourage saving and the build up of assets, the Saving Gateway and the Child Trust Fund. The Child Trust Fund would benefit each of the 700.000 or more children born every year. The scheme would allow parents, grandparents, friends and children themselves to make additional contributions, so providing families with a safe and secure account to save towards their children's future. The Child Trust Fund would provide all young people beginning their adult life with the advantage that owning financial assets brings.

The cost of the scheme would depend on the level of the endowment and other aspects of its design, details on which the Government are consulting. But cost-effectiveness will be a key consideration as the Government develop this proposal in the light of consultation.