§ Mr. FlightTo ask the Chancellor of the Exchequer (1) what constraints will be placed upon parents' investment decisions on behalf of their children in respect of money made available through the Child Trust Fund; [9753]
(2) if people without bank accounts will be able to access the (a) Savings Gateway and (b) the Child Trust Fund, through the Universal bank; [9737]
(3) what plans he has to encourage saving among families on low incomes; [9745]
(4) what recent representations he has received from UK financial institutions on the Child Trust Fund; and of 208W these how many have expressed concern about the implications of the fund for competition in the retail savings sector; [9755]
(5) what will be the estimated cost of policing the Child Trust Fund to ensure that funds are invested in ways permissible under the associated regulations; [9752]
(6) how many additional families he estimates will be subject to means-testing as a result of (a) the Child Trust Fund and (b) Savings Gateway; [9749]
(7) if lump sums made available as part of the Child Trust Fund will be increased annually in relation to (a) average earnings and (b) inflation; [9746]
(8) if he will make a statement on progress in implementing the Child Trust Fund; [9748]
(9) what the cost will be to the Government of the (a) Child Trust Fund and (b) Savings Gateway in their first full year of operation. [9750]
§ Ruth KellyThe Government's strategy towards saving and the measures they have taken, including the introduction of Individual Saving Accounts and Stakeholder Pensions, is set out in "Helping People to Save", published by HM Treasury in November 2000.
The Government launched consultation on further proposals to encourage saving and asset-building, especially among households with low incomes, in "Saving and Assets for All" published by HM Treasury in April 2001. The consultation is focused on proposals for the Child Trust Fund and the Saving Gateway. As the consultation paper describes, decisions on the design and operation of the proposed initiatives have not been taken. The potential cost of the initiatives would depend on such decisions. Many financial service providers have responded to the consultation. The Government intend to report back on the results from the consultation and on its further intentions for these initiatives around the time of the pre-Budget report in autumn 2001.