We in wonkworld are always ready to give credit where it is due. In 2003, the I
PPR trumpeted Gordon Brown's adoption of their nice asset-based welfare idea in the form of the Child Trust Fund. A week ago, my 11-month old son received a letter updating him on the progress of his fund. I clarified some things for him, such as why the database appeared to know his name but not his gender. But I couldn't tell him how the 250 quid invested on his behalf by the government had mushroomed into 245 quid. At this rate - and yes, I am aware that past performance is no indicator of future performance, so things might get worse - he will come of age with 160 pounds, which he can spend on a veggieburger at Second Life Glastonbury.
New Comment
Will Davies
Presumably they do that thing that pension funds do, where they try and kick-start it in the early years by putting into high-risk areas of the stock market, then gradually reduce the risk as he nears 18 (in time to go on a clubbing holiday to the tropical island of Birmingham). But it is very bad policy-making if they don't properly inform you about this. Many companies flog ISAs and pensions, while cynically down-playing the difference between saving your money in a bank and putting it into, equities. People end up thinking they can get high returns at no extra risk, and end up paying the price.