SNP Work and Pensions spokesperson and local MP Eilidh Whiteford has called for the UK Government to review the operation of Child Trust Funds after it emerged almost a quarter of a billion pounds has been lost from the value of funds in the last year.
A report has revealed that, in Scotland, the loss stands at about £24million affecting 500,000 children.
Dr Whiteford has called for the UK Government to review the advice that it provides to parents on the scheme and investigate reforming the scheme to allow the fund to be transferred into Junior ISA or savings schemes.
Commenting, Dr Whiteford said:
“With some parents seeing a third wiped off the value of their children's funds over the last year this has been a painful reminder of that old small-print warning that the value of investments can fall as well as rise.
“The UK government should now consider updating the advice that it gives to parents on how these funds are managed and investigate reforming the scheme to allow the fund to be transferred into alternative, lower risk, schemes such as Junior ISA or savings schemes.”