Child Trust Funds (Amendment No. 3) Regulations 2010

My Lords, I will make one simple point. This country is deeply unequal. Inequality has extended and expanded during both Conservative and Labour Administrations. It expresses itself in many ways, including in the differing abilities of people to save and in whether saving as a concept means anything to them. There are plenty of possibilities for saving. We heard a paean of praise for them from the Liberal Democrat Benches. They are for middle-class and wealthier people, through ISAs, which enable wealthier people to lay aside money and provide additional benefits to them as well. For poorer people the possibilities for saving were already weak, and this Government's inegalitarian policy is clearly designed to make things worse. The abolition of the saving gateway, to which my noble friend referred, is obviously a part of this issue. It was a very carefully tested and costed scheme, and it worked extremely well in other countries as well as in this one. It was not a display of mad largesse by a left-wing Government in this country—there are plenty of examples of it elsewhere. However, the saving gateway scheme has simply been abolished, which means that poorer people who would not normally fall into the categories of those who are able to save, as set out by the noble Lord, Lord Newby, will now not have the possibility of doing so. The child trust fund is a part of that. These are people who have to be assisted by the state. As we have heard, they cannot save very much, if anything, and it is the function of government to provide assistance for such people. The scheme was very successful with a good take-up, as we heard from the noble Lord opposite, who spoke impressively with great knowledge and feeling on the subject, but now working-class and poorer people will be denied the ability to take serious decisions at key moments in their lives. The savings structure that we have is manifestly unfair, and it reflects the social inequalities and unfairnesses in this country. My final point is that, contrary to what has been said, child trust funds, along with the saving gateway provision, improved people’s ability to understand finance. There was a real point in financial literacy. People with no financial literacy at all because they had no funds and were simply victims of a harsh capitalist system now found themselves with the means to understand these matters. Therefore, this extremely mean-spirited proposal increases inequality, denies economic and social empowerment to many people, and, I am afraid, is all too typical of what we have had over the past few weeks.