Labour Shadow Treasury financial secretary Chris Leslie is calling on the Government to merge child trust funds and junior Isas to enable people to switch to the new, more competitive range of junior Isa products.
At the Tisa conference, Leslie said six million children under the age of nine are locked into CTFs because Government rules say they cannot be transferred to a junior Isa.
He said: “Government policy moves on and the agenda moves with it. Fewer competitors vying to offer competitive CTFs means shopping around does not necessarily secure the best deal when so many more competitive products will be emerging in the junior Isa area.
“I will be putting as much pressure as I can on the Government to look at merging CTFs and junior Isas. It is important and it should not be rocket science to give greater choice to those six million people.”
Also speaking at the conference, Treasury financial secretary Mark Hoban said the Government has moved to align CTFs and junior Isas but there are no plans to merge the two. He said: “There are a lot of people invested in CTFs and they should continue as they are. To bring them in line with junior Isas, we increased the annual contribution limit to £3,600 so people can put aside the same amount of money for their children whe-ther they qualify for a CTF or a junior Isa but we do not have plans to merge the two.”