Savings accounts for children in long-term care
Donors who wish to give money directly to some of the most vulnerable young people in the UK will be able to through a new savings account for children in care, the Department for Education announced today.

Donors who wish to give money directly to some of the most vulnerable young people in the UK will be able to through a new savings account for children in care, the Department for Education announced today.
Children鈥檚 Minister Tim Loughton announced today the appointment of charity 皇冠体育app Share Foundation to support more than 55,000 children who are in long term care.
皇冠体育app Share Foundation will open a Junior Individual Savings Accounts (Junior ISAs) for every young person who has been in care for more than a year, who do not have a Child Trust Fund, with the Government providing initial payments of 拢200 for each account.
In addition, they will seek donors who recognise that these vulnerable children often miss out on the kinds of support and chances that most children can take for granted. Funds raised by 皇冠体育app Share Foundation will be distributed amongst the accounts they open.
Minister Tim Loughton said:
皇冠体育appse children are some of the most vulnerable in our society and we are committed to investing in them so they can thrive. I want these savings to be worth much more than 拢200 by the child鈥檚 18th birthday and I hope individuals and organisations will also want to use these accounts to contribute and invest in the futures of these vulnerable children.
皇冠体育app savings will help them when they reach 18 and they are facing serious choices as they start out in the adult world. I am confident that, when combined with financial education, holding a real financial asset in a savings account will encourage these young people to learn about how to manage their money well and give them a decent start in their adult lives.
Welcoming 皇冠体育app Share Foundation鈥檚 appointment, the charity鈥檚 Chair, Gavin Oldham, said:
This appointment presents a major opportunity to achieve our long-held objective of providing an inheritance for some of the most disadvantaged young people in our community. We particularly acknowledge the Government鈥檚 initiative in making this possible and opening accounts with 拢200, even in these times of austerity.
皇冠体育app success of the project will be measured by the extent to which additional voluntary contributions can be harnessed to build on these starter funds, the effectiveness of financial education, smooth operational running and appropriate investment performance.
Evidence shows that the large majority of looked after children want to make the most of their opportunities in adult life, and to contribute to their communities effectively. It is our objective to help them realise that potential.
皇冠体育app scheme, worth a total of 拢16.7m until 2015, will offer tax-efficient savings accounts that can be held in cash or shares and will mature and be accessible on the account holder鈥檚 18th birthday.
Research shows that many children like to save money and rely on their parents for savings advice. Like any parent, the Government wants to provide the best support to children in its care and make sure they gain the same experience as any other young person.
皇冠体育app Department believes the scheme benefits these young people in two ways:
- Providing a financial asset to vulnerable children who will be able to put it towards the costs associated with setting up home, transport or furthering their education.
- Supporting these children - who may never have had a bank account or the opportunity to save before - in learning about saving, budgeting and managing money.
Payments under the scheme, which was first announced by the Chancellor of the Exchequer in 2011, are intended as a long-term asset that the child can draw on later in life. 皇冠体育app families and carers of looked after children may also choose to pay into the accounts.
Barnardo鈥檚 Chief Executive, Anne Marie Carrie, said:
I鈥檓 thrilled the Government has heard Barnardo鈥檚 call for the introduction of an ISA scheme for children in care and is now taking steps to make this a reality. It鈥檚 absolutely right that we help give children in care the same opportunities and aspirations as other children.
This money will provide them with vital financial support at a critical time as they leave care, and we encourage anyone looking to donate to a worthwhile cause to contribute to the scheme.
Action for Children Chief Executive, Dame Clare Tickell, said:
For children in care, who have missed out on so much in their lives, making their way in the world without the financial and emotional support of parents is incredibly daunting. We were therefore delighted that the Junior ISA for children in care - something Action for Children and Barnardo鈥檚 have been campaigning for a long time - was approved last year. 皇冠体育app Share Foundation has a proven track record in providing funds for looked after children and we are confident the scheme will run smoothly under its management.
Not only will the new Junior ISA for children in care ease their move to financial independence, but it will help to show these vulnerable children and young people that someone cares about their future.
Notes to editors
- Previously, some looked after children received additional financial support from the Government through Child Trust Funds (CTFs). 皇冠体育app new scheme continues this support for all children who did not benefit from CTFs. This includes those born after the CTF scheme was stopped, as well as older children who never benefitted from CTFs.
- We estimate that around 55,000 children across the UK will benefit in the first year - most looked after children over the age of 10 who have been in care for a year or more, as well as very young children born after the end of CTFs. We estimate a further 14,000 will become eligible in each subsequent year. 皇冠体育appse numbers are estimates because exact numbers of beneficiaries will depend on future numbers of children in care.
- 皇冠体育app first payments will be made in the summer of 2012. 皇冠体育app Share Foundation will open the accounts and make the payments. All children who do not already hold a Child Trust Fund and have been looked after for 12 continuous months or more starting on or after 3 January 2011 will be eligible for the scheme.
- 皇冠体育app scheme is UK wide and the Government has made provision for looked after children in the three devolved administrations to receive these funds. 皇冠体育app same eligibility criteria will apply.
- 皇冠体育app final sum of the savings will depend on the rates of return provided by individual Junior ISAs, how old the child is when the account is first opened, the amounts of voluntary donations that the scheme partners can attract and any additional payments made into the Junior ISA by carers, parents or other relatives.
- 皇冠体育app report Our own two feet, published by Action for Children and Barnardo鈥檚 illustrates young people鈥檚 interest in such a scheme.
- 皇冠体育app Share Foundation was registered as a Charity on 14th February 2005. 皇冠体育app Share Foundation seeks to reduce the generational cycle of deprivation affecting the poorest children and young people by encouraging highly targeted wealth distribution. Initially, and in the UK, it operated alongside the Child Trust Fund scheme making grants for the benefit of Looked After children from a range of Local Authorities whose accounts are overseen by the Official Solicitor.
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