Child Trust Funds (Amendment) Regulations 2010

My Lords, the noble Lord, Lord Newby, questioned whether there had been a debate in the other place. I was referring to the Eighth Delegated Legislation Committee, which debated this issue on Wednesday, 10 February. The report I have is headed Parliamentary Debates, and I read with confidence what is put in front of me. The positions expressed by the noble Baroness, Lady Noakes, and the noble Lord, Lord Newby, are consistent with the stance that their parties have taken on child trust funds. I understand the point that the noble Baroness makes about evidence on whether a savings habit is established, but the nature of such an intervention is that conclusive evidence can be available only once we have experience. We are pleased, from the research we have been doing and the uptake of child trust funds, that there is real interest in child trust funds, and we continue to work to promote awareness of them among eligible members of society. The noble Lord, Lord Hamilton, asked about the cost of the scheme. I have a note here somewhere which I think corroborates the figure that the noble Baroness gave as the absolute cost of the scheme. I believe that the incremental cost of this proposal is of the order of £35 million or so a year. The overall cost of the child trust fund will be £520 million in 2010-11. That includes the disability payment, which will be £30 million in the current year, in addition to the £490 million cost of the birth and age 7 payments. The financing of that will come from Exchequer resources, raised through taxation, and is already factored into the Chancellor’s Budget. The noble Lord, Lord Newby, asked about the take-up in constituencies. I am not sure whether we have data on that but I will investigate; if we do, I shall of course write to all Members participating in the debate. It is clear, given that we have child trust funds, that although there may be different attitudes between the different parties on these funds, nobody today wants to stand in the way of a proposal to make additional contributions in respect of children suffering from disability or severe disability. That is appropriately and correctly noted, and with that I commend the regulations to the Committee. Motion agreed.