Date: 08.45-10.00, Wednesday 25th November 2009
Location: Social Market Foundation, 11 Tufton Street, London, SW1P 3QB
Speakers: Dr Rajiv Prabhakar, London School of Economics and the Open Univsersity Brian Pomeroy CBE, Chair, Financial Inclusion Task Force
Chair:
The recent announcement that under a Conservative government Child Trust Funds would be restricted to families earning less than £16,000 per year puts pressure on the scheme to demonstrate its value in the context of a dire situation for public spending.
Child Trust Funds (CTFs) are tax-free savings accounts for children born after September 2002, which were designed to encourage saving, increase financial capability, and unlock other benefits identified by the asset-based welfare agenda. Children are able to access the funds built up in a CTF from the age of 18. As well as being encouraged to make ongoing contributions into a CTF, parents are expected to open a CTF for their new-born child, choose an account-type and a provider.
However, rates of take-up for CTFs have varied. On average, 26% of parents do not open a CTF, and this figure is higher among lower socio-economic groups. Indeed, the lack of parental engagement among the most deprived groups has been a significant stumbling block for the CTF scheme.
This seminar will therefore explore the ways in which behavioural economics theory may both explain non take-up of CTFs by parents, and provide potential pointers toward increasing parental engagement. The seminar will explore issues of inertia, advice and information, and draw upon focus groups with parents that explored barriers to the usage of CTFs.
Key Questions:
A buffet breakfast will be provided
This event is kindly supported by the Economic and Social Research Council
If you would interested in taking part in this seminar please email events@smf.co.uk to reserve a space or telephone 020 7222 7060