Action for Children and Barnardo's respond to the chancellor's announcement

22 March 2011

Action for Children and Barnardo's respond to the Chancellor's announcement that the government will invest in savings accounts for all children leaving the care system.

Children's charities Action for Children and Barnardo's welcome the decision as they had jointly campaigned for the Government to urgently rethink their plans for children in care. They launched the On Our Own Two Feet campaign following the abolition of child trust fund ISA savings accounts for every child in the UK.

Responding to George Osborne's announcement in the House of Commons, Action for Children's Chief Executive Dame Clare Tickell says, “Action for Children congratulates the government for taking the opportunity to provide savings accounts for children in the care system. Leaving care can be a frightening and isolating time and, in the absence of support from their families, this financial support will make all the difference to care leavers, helping them to stand on their own two feet as independent adults. We look forward to working with the government to make it happen.”

Barnardo's chief executive Anne Marie Carrie says: “Barnardo's is extremely pleased to see the Government living up to its responsibility as corporate parent for children in the care system, who are some of the most disadvantaged children in our society. This modest investment into savings accounts for looked after children will help these young people achieve their goals and avoid negative outcomes such as homelessness or falling into cycles of debt. We look forward to hearing from the Government about their wider financial package for vulnerable children and young people in the budget.”

From the 1st January 2011 the Government abolished the child trust fund ISA savings account (CTF) for every child in the UK. The CTF accounts matured as young people turned 18 and the loss of this nest egg was a particularly painful blow for those children in the care system. The Government saved £500 million pounds per year by abolishing the child trust fund ISA and had initially only replaced it with a voluntary ISA scheme for parents to pay into if they wish.

The majority of children in care who have little or no contact with their parents, would otherwise have received nothing. The two charities put a joint proposal to the Government, 'On our own two feet', which would cost just £6.6 million per year and would ensure that children in care retain their modest savings.

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