We discussed earlier today whether Child Trust Funds should be scrapped. Now George Osborne has confirmed that they will be scrapped as part of a £6.2billion spending cut.
Osborne has just announced what areas he'll be making cuts in, including a civil service recruitment freeze, cuts to IT programmes, property and quangos. He's assured us that funding for schools, 16 to 19-year-olds' education and Sure Start are all safe areas. However, they'll be axing Child Trust Funds by January, as this will save £520m.
This is the coalition government's first attempt at reducing the UK's budget deficit, which is currently estimated to be at £156bn.
The cuts are a controversial choice given the original disagreement between the Lib Dems and Conservatives over whether they should be making them in the first place. Critics have also suggested that making cuts at this point could lead to a further problem with the economy and the threat of a slow-down in growth leading to a potential double-dip recession.
What do you think about these cuts? Do you use Child Trust Funds?