Explanatory Note
(This note is not part of the Regulations)
These Regulations amend the Child Trust Funds Regulations 2004 (S.I. 2004/1450: “the main Regulations”) which provide for the setting up of Child Trust Fund accounts. The main effect of these Regulations is to provide for a further government contribution, under section 10 of the Child Trust Funds Act 2004, for children in families receiving income support or jobseeker’s allowance who will not move from those benefits to Child Tax Credit until after 5th April 2005.
Regulation 1 provides for citation and commencement, and regulation 2 for amendment of the main Regulations.
Regulation 3 provides for the further government contribution of £250.
Regulations 4 and 5 make consequential amendments to the provisions in the main Regulations dealing with recoupment of contributions which should not have been paid, and claims by account providers to the Inland Revenue for contributions due to accounts which they manage.
A full Regulatory Impact Assessment was prepared and issued on the introduction to Parliament of the Child Trust Funds Bill (passed as the 2004 Act) in November 2003.