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Limiting CTFs would undermine savings culture, says IMA

The Investment Management Association says Conservative proposals to scrap child trust funds for the majority of families would damage the savings culture amongst the youth.

At the Tory conference in Manchester shadow chancellor George Osborne said offering CTF payments only to disabled children and the poorest third of families would save £300m a year.

IMA director of education Victoria Nye says: “CTFs are an ideal hook to encourage children to learn the importance of saving money. It’s a lesson from which all children, and in time, the State finances will benefit, as more people save younger and for longer.

“Cutting CTFs would undermine the value of those lessons and could potentially halt further progress in promoting a savings culture among young people.”

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