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Child trust fund

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A child trust fund (CTF) is a long-term savings or investment account for children in the United Kingdom. New accounts can no longer be created as of 2011, but existing accounts can receive new money: the accounts were replaced by Junior ISAs .

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124-701: The UK Government introduced the Child Trust Fund with the aim of ensuring that every child has savings by their eighteenth birthday, helping children get into the habit of saving; whilst teaching them the benefits of saving and helping them understand personal finance . The Child Trust Fund scheme was promised in the Labour Party 's 2001 general election manifesto and launched in January 2005, with children born on or after 1 September 2002 eligible. Eligible children received an initial subscription from

248-467: A Fixed Term Parliament Bill , and end income tax for those earning less than £10,000 a year. The Conservatives also agreed to shelve their plans to replace the Human Rights Act 1998 with a proposed British Bill of Rights . The Conservatives refused to agree to Lib Dem demands for a referendum on proportional representation, instead offering a referendum on a switch from first-past-the-post to

372-490: A leadership election . Between June and October 2019, the total number of MPs rose from 11 to 21, following eight defections from other parties, one by-election win, and Lloyd retaking the whip. The defections were mainly former MPs of Change UK , with Chuka Umunna and Sarah Wollaston joining directly from the party, whereas Heidi Allen , Luciana Berger , and Angela Smith joined after subsequently being part of The Independents . The remaining defectors were three of

496-837: A coalition government, Blair was interested in cooperation with the Lib Dems. In July 1997, he invited Ashdown and other senior Lib Dems to join a Cabinet Committee on constitutional affairs. Privately, Blair offered the Liberal Democrats a coalition but later backed down amid fears that it would split his own Cabinet. The joint Committee launched the Independent Commission on the Voting System in December; its report, published in October 1998, proposed

620-572: A formal apology for breaking this promise in September 2012. Shortly after the 2015 general election, Liberal Democrat leadership contender Norman Lamb conceded that Clegg's broken pledge on university tuition had proven costly. In the May 2011 local elections and the elections for the Welsh Assembly and Scottish Parliament, the Liberal Democrats suffered heavy defeats. Clegg admitted that

744-574: A greater or lesser degree (for instance Chancellor of the Duchy of Lancaster or Lord Privy Seal ). The government is sometimes referred to by the metonym " Westminster " or " Whitehall ", as many of its offices are situated there. These metonyms are used especially by members of the Scottish Government , Welsh Government and Northern Ireland Executive to differentiate their government from His Majesty's Government. The United Kingdom

868-461: A less centralised economy. This distinguishes the party from many liberal parties elsewhere in Europe that are instead dominated by classical liberalism . By comparison, the Liberal Democrats support a mixed economy and have sometimes opposed privatisation. The party spans the centre and centre-left , and has emphasised each aspect at different times. The public have traditionally viewed

992-579: A maximum per year into their child's fund; the year is counted from birthday to birthday, not a tax year. The maximum tax-free limit is subject to change. Currently, (tax year 2020/2021) it stands at £9000 per year. Before that it was £4,368 and £4,260 per year. Originally the subscription limit was £1,200, and then from 1 November 2011, the limit was raised to £3,600 and has been increasing gradually each year since then, in line with increases in Junior ISAs . Any gains or dividends will be tax free (except for

1116-482: A member of either House of Parliament. In practice, however, the convention is that ministers must be members of either the House of Commons or the House of Lords to be accountable to Parliament. From time to time, prime ministers appoint non-parliamentarians as ministers. In recent years such ministers have been appointed to the House of Lords. The government is required by convention and for practical reasons to maintain

1240-412: A new House of Commons, unless the prime minister advises the monarch to dissolve Parliament , in which case an election may be held sooner. After an election, the monarch selects as prime minister the leader of the party most likely to command the confidence of the House of Commons, usually by possessing a majority of MPs. Under the uncodified British constitution , executive authority lies with

1364-539: A republic was formed. According to a 1999 survey, two-thirds of party members supported retaining the monarchy. In the 1990s, there was an anti-royalist contingent within the party; in 1993, the party conference announced support for removing the royal prerogative , and the 2000 conference backed calls for the monarch to be removed as the Supreme Governor of the Church of England . At its 2003 conference,

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1488-439: A stakeholder account on behalf of the child: 30% of accounts were opened in this way. There is a significant correlation between these HMRC-allocated accounts and low income families, and there is a high incidence of 'Addressee Gone Away' accounts and accounts never registered by the family in this segment. Subscriptions by individuals were in addition to any voucher subscriptions. Parents and other family members or friends can pay

1612-604: A substantial grant from the government, the Sovereign Support Grant , and Queen Elizabeth II's inheritance from her mother, Queen Elizabeth The Queen Mother , was exempt from inheritance tax . In addition to legislative powers, His Majesty's Government has substantial influence over local authorities and other bodies set up by it, through financial powers and grants. Many functions carried out by local authorities, such as paying out housing benefits and council tax benefits, are funded or substantially part-funded by

1736-488: A successful campaign, the party made the biggest gain in seats in its history, winning a party high of 72 seats. The Liberal Democrats have an ideology that draws on both the liberal and social democratic traditions. The party is primarily social liberal , supporting redistribution but sceptical of increasing the power of the state, emphasising the link between equality and liberty. The party supports investment and progressive taxation, but also promotes civil liberties and

1860-619: A universal account for all children first appears in Sherraden's Assets and the Poor (1991). In the UK, the idea took off in 1999/00 with a number of contributions to the New Statesman in 1999, including an article from Robert Reich endorsing the idea; and support in 2000 by the influential Institute for Public Policy Research . Sherraden's Center for Social Development collaborated with

1984-412: A week to the state pension for people over the age of 75. In 2003, it outlined plans for devolving control of schools to local councils. In the mid-1990s and early 2000s, it stated that such increases in education spending would be funded through higher taxes. These included a 50% tax on those earning over £100,000 a year, and raising the basic rate of income tax by one penny in the pound. In 2003,

2108-424: Is a constitutional monarchy in which the reigning monarch (that is, the king or queen who is the head of state at any given time) does not make any open political decisions. All political decisions are taken by the government and Parliament. This constitutional state of affairs is the result of a long history of constraining and reducing the political power of the monarch, beginning with Magna Carta in 1215. Since

2232-603: Is not vital. A government is not required to resign even if it loses the confidence of the Lords and is defeated in key votes in that House. The House of Commons is thus the responsible house . The prime minister is held to account during Prime Minister's Questions (PMQs) which provides an opportunity for MPs from all parties to question the PM on any subject. There are also departmental questions when ministers answer questions relating to their specific departmental brief. Unlike PMQs, both

2356-492: Is the centre-left Beveridge Group , inspired by William Beveridge . The Beveridge Group has been associated with both social liberals and social democrats within the party, including former Liberal Democrat leader Charles Kennedy . The Liberal Democrats support institutional reform in the United Kingdom, including the decentralisation of state power, reform of Parliament, and electoral reform. At its 1993 conference,

2480-399: Is the most successful product there's ever been." For households with income of £19,000 a year, 30% of the children in that category are having £19 a month saved for them. Part of this is due to grandparents being more willing to contribute to funds, since the money cannot be diverted to the family finances. Creation of new funds and government payments into them were scrapped in January 2011 by

2604-404: The 2008 local elections it gained 34 seats, beating Labour in terms of vote share. The following year, the party was damaged by the expenses scandal as several Lib Dem MPs and peers were found to have misused their expenses; Campbell for example was revealed to have claimed nearly £10,000 in expenses for luxury home furnishings. In the build-up to the 2010 general election , Clegg took part in

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2728-457: The 2023 local elections , gaining 405 councillors and winning control of 12 more councils. They also overturned a 19,000 Conservative majority in the 2023 Somerton and Frome by-election to elect Sarah Dyke as their 15th MP. In the 2024 local elections , Davey said he was confident of toppling the "Tory Blue Wall in Surrey". The Lib Dems finished in second place behind Labour and ahead of

2852-415: The 2024 general election , where despite only a small vote share increase to 12.2 per cent, the party won 72 seats, their highest total ever, and returned to being the third largest party in the House of Commons for the first time since 2015. A centrist to centre-left political party, the Liberal Democrats ideologically draw upon both liberalism and social democracy . Different factions have dominated

2976-425: The 21 rebel Conservative MPs who had the whip withdrawn for voting against the government on a piece of legislation which would prevent a no-deal scenario on 31 October 2019: Antoinette Sandbach , Sam Gyimah , and Phillip Lee . The latter physically crossed the floor during the debate on the legislation, effectively removing the majority of the first Johnson government. Heading into the 2019 general election ,

3100-483: The Greater London Authority disputed. Similarly, the monarch is immune from criminal prosecution and may only be sued with his permission (this is known as sovereign immunity ). The sovereign, by law, is not required to pay income tax, but Queen Elizabeth II voluntarily paid it from 1993 until the end of her reign in 2022, and also paid local rates voluntarily. However, the monarchy also received

3224-582: The House of Commons . They have 78 members of the House of Lords , four members of the Scottish Parliament , one member in the Welsh Senedd , and more than 3,000 local council seats. The party holds a twice-per-year Liberal Democrat Conference , at which party policy is formulated. In contrast to its main opponents' rules, the Liberal Democrats grant all members attending its Conference

3348-636: The House of Commons ; the Conservatives, led by Margaret Thatcher , won the election. Within the Labour Party, many centrists were uncomfortable with the growing influence of the hard left , who were calling for the UK to leave the European Economic Community and unilaterally disarm as a nuclear power . In January 1981, four senior Labour MPs— Bill Rodgers , Shirley Williams , Roy Jenkins , and David Owen , known as

3472-607: The Renew Europe group in the European Parliament. The Liberal Party had existed in different forms for over 300 years. During the 19th and early 20th century, it had been one of the United Kingdom's two dominant political parties, along with the Conservative Party . Following World War I , it was pushed into third place by the Labour Party and underwent a gradual decline throughout the rest of

3596-542: The Savings Accounts and Health in Pregnancy Grant Act 2010 . Asset-based egalitarianism traces its roots to Thomas Paine , who proposed that every 21-year-old man and woman receive £15, financed from inheritance tax . In 1989, LSE professor Julian Le Grand proposed a similar idea, calling it a "poll grant". Subsequently the related concept of Individual Development Accounts was developed in

3720-715: The September 11 attacks in the United States and the launch of the U.S.-led War on terror , the Liberal Democrat MPs backed the government's decision to participate in the United States invasion of Afghanistan . The party was more critical of Blair's decision to participate in the U.S.-led invasion of Iraq in 2003; Kennedy joined the large anti-war march in London. With the Conservatives backing

3844-655: The Welsh Assembly . The party campaigned for a Remain vote in the referendum on United Kingdom membership of the European Union in June 2016. After the Leave vote, the Liberal Democrats sought to mobilise the 48% who voted Remain, and the party's membership rose again, reaching 80,000 by September. The 2017 local election results saw a loss of about 40 council seats. In the 2017 general election , during which

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3968-485: The euro . The Liberal Democrats have promoted further environmental protections and opposed British military ventures such as the Iraq War . The Liberal Democrats are historically strongest in northern Scotland , south-west London, South West England , and mid Wales . Membership is primarily made up of middle-class professionals and the party's composition has a higher proportion of university educated members than

4092-759: The " Gang of Four "—issued the Limehouse Declaration in which they announced their split from Labour. This led to the formal launch of the Social Democratic Party (SDP) in March. One of its first decisions was to negotiate an electoral arrangement with the Liberals, facilitated between Jenkins, who was the first SDP leader, and Steel. The new alliance initially did well in opinion polls. The SDP and Liberals agreed to contest alternating parliamentary by-elections; between 1981 and 1982,

4216-524: The 10% tax on UK share dividends). Stakeholder accounts cannot set the minimum contribution above £10, but the provider can set a lower minimum. Every child born on or after 1 September 2002 was eligible for the CTF, as long as: The children of Crown servants posted abroad – including the Armed Forces – qualify because they are treated as being in the UK. Most advisers recommend equity -based CTFs, and

4340-531: The 1999 elections for the Scottish Parliament and the Welsh Assembly. In both, the Lib Dems came fourth and became Labour's junior coalition partners. The MP Simon Hughes was initially seen as Ashdown's most likely successor, but was defeated in the contest by Charles Kennedy . To reduce the impact of more leftist members who tended to dominate at conferences, Kennedy proposed that all members—rather than just conference delegates—should vote for

4464-432: The 2015 local elections , held the same day. Membership of the Liberal Democrats rose from 45,000 to 61,000 as the party prepared to hold its 2015 party leadership ballot . On 16 July 2015, Tim Farron was elected to the leadership of the party with 56.5% of the vote, beating opponent Norman Lamb . In the May 2016 local elections , the Liberal Democrats gained a small number of council seats, though they lost ground in

4588-493: The 2018 local elections and 704 councillors in the 2019 local elections . In the 2019 European Parliament election the party ran with an anti-Brexit message seeking the support of those who wish the UK to remain in the EU, using the slogan " Bollocks to Brexit " which attracted considerable media attention. In that election, the party gained 20% of the popular vote and returned 16 MEPs. In May, Cable stood down as leader, triggering

4712-469: The 20th century. In the 1970s, the Liberal leader David Steel began contemplating how an alliance with other parties could return it to political power. In 1977, he formed a pact with Labour Prime Minister James Callaghan to back Callaghan's government in a motion of no confidence . This angered many Liberals and damaged them electorally. In the 1979 general election , the Liberals lost three seats in

4836-497: The Alternative Vote system. The coalition introduced an emergency budget to attack the fiscal deficit. After joining the coalition poll ratings for the party fell, particularly following the government's support for raising the cap on tuition fees with Liberal Democrat MPs voting 27 for, 21 against and eight abstaining. The Liberal Democrats had made opposing tuition fees a major message of their campaign, with all of

4960-550: The Conservatives in terms of seats. The Liberal Democrats gained Tunbridge Wells council and Dorset Council . They notably added more council seats than any other party over the last parliament, gaining more than 750 in the last five years, largely in southern England . The Liberal Democrats entered the 2024 general election with its manifesto policies including reforming Carer's Allowance , free personal care in England, votes at 16 and proportional representation . After

5084-511: The Crown, who may use them without having to obtain the consent of Parliament. The prime minister also has weekly meetings with the monarch. What is said in these meetings is strictly private; however, they generally involve government and political matters which the monarch has a "right and a duty" to comment on. Such comments are non-binding however and the King must ultimately abide by decisions of

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5208-502: The European Parliament are immune from prosecution in EU states under any circumstance. As a consequence, neither EU bodies nor diplomats have to pay taxes, since it would not be possible to prosecute them for tax evasion. When the UK was a member of the EU, this caused a dispute when the US ambassador to the UK claimed that London's congestion charge was a tax, and not a charge (despite the name), and therefore he did not have to pay it—a claim

5332-591: The European Union. In December 2018, the MP for Eastbourne , Stephen Lloyd , resigned the Liberal Democrat Whip, saying that his party's position on Brexit was inconsistent with his pledge to his constituency that he would "respect the result" of the 2016 United Kingdom European Union membership referendum . Although Lloyd remained a Liberal Democrat member, this took the number of sitting Liberal Democrat MPs down to 11. The party gained 76 councillors in

5456-647: The IPPR, and a briefing paper by it remarked "It would be impossible to overstate the leadership and contributions of the Institute for Public Policy research in informing and shaping this new policy direction in the United Kingdom". This carried through into proposals being included in the Labour Party 's 2001 general election manifesto. The Child Trust Fund scheme was promised in the Labour Party 's 2001 general election manifesto, and launched in January 2005, with children born on or after 1 September 2002 eligible. Over

5580-493: The Labour government's decision to go to war, the Lib Dems were the only major party opposing it. In following years, Lib Dem MPs increasingly voted against the Labour government on a range of issues. Much of this Lib Dem opposition to the government came from their members in the House of Lords. In the 2003 local elections , the party secured about 30% of the vote, its highest ever result. In 2004, The Orange Book anthology

5704-439: The Lib Dems' public support. In retrospect the move to oust Kennedy was seen as a "graceless" move and a turning point for the Lib Dems, who after 2010 would lose many of the left-leaning voters that Kennedy won over from Labour in 2005, "reeling in disgust from the decision to go into coalition" with the Conservatives (which Kennedy staunchly opposed). In March 2006, Menzies Campbell succeeded Kennedy as party leader. Campbell

5828-577: The Liberal Democrats gained councillors in all countries of Great Britain, with the largest gain of any party in England with 194 new councillors. One month later, the Liberal Democrats contested and won the Tiverton and Honiton by-election with its candidate Richard Foord , overturning a majority of over 24,000 and breaking the record for the biggest overturning of a majority in British by-election history. The Liberal Democrats saw considerable gains in

5952-498: The Liberal Democrats is Leonard Hobhouse , and there is substantial overlap between the party's platform and the form of social democracy advocated by Anthony Crosland in The Future of Socialism . The party's egalitarianism is based on the concept of equality of opportunity . The party has been sceptical of positive discrimination , including in its process for selecting political candidates. The party has frequently debated

6076-699: The Liberals in Brecon and Radnor and Ryedale . Both parties lost seats in the 1987 general election . In the wake of this, Steel called for the SDP and Liberals to merge into a single party. At the grassroots, various local constituency groups had already de facto merged. In the SDP, Jenkins, Rodgers, Williams, and the MP Charles Kennedy supported the idea; Owen and the MPs Rosie Barnes and John Cartwright opposed it. The SDP's membership

6200-493: The Post being chosen over Alternative Vote by approximately two-thirds of voters. In May 2011, Clegg revealed plans to make the House of Lords a mainly elected chamber, limiting the number of peers to 300, 80% of whom would be elected with a third of that 80% being elected every five years by single transferable vote . In August 2012, Clegg announced that attempts to reform the House of Lords would be abandoned due to opposition for

6324-524: The SDP came close in Warrington and won Crosby and Glasgow Hillhead . At the 1983 general election , the Liberals gained five additional seats although the SDP lost many that they had previously inherited from Labour. After the 1983 election, Owen replaced Jenkins as head of the SDP. Several gains were made in subsequent by-elections: the SDP won in Portsmouth South and Greenwich and

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6448-526: The September 1988 conference it adopted the short form name "the Democrats" and in October 1989 changed its name to "Liberal Democrats". The bird of liberty was adopted as its logo. In 1989, its election results were poor: it lost 190 seats in the May 1989 local elections and secured only 6.4% of the vote in the 1989 European Parliament elections , beaten to third position by the Green Party . This

6572-470: The UK's first televised party leaders debate; he was generally considered to have performed well, with pundits referring to an ensuing "Cleggmania". In the election, the Lib Dems secured 23% of the vote and 57 seats; the Conservatives were the largest party but lacked a majority. The Conservatives and Lib Dems formed a coalition government, with Clegg becoming Deputy Prime Minister. Four other Lib Dems—Cable, Huhne, Danny Alexander , and David Laws —entered

6696-516: The United Kingdom , officially His Majesty's Government , abbreviated to HM Government , is the central executive authority of the United Kingdom of Great Britain and Northern Ireland . The government is led by the prime minister (currently Keir Starmer since 5 July 2024) who selects all the other ministers . The country has had a Labour government since 2024. The prime minister Keir Starmer and his most senior ministers belong to

6820-452: The United States by Michael Sherraden. This approach - termed " asset-based welfare " by Sherraden - saw asset redistribution less as an egalitarian measure than as one which supported poverty reduction by encouraging saving. Sherraden argued that owning an asset led to people changing their way of thinking, being more likely to plan and invest in their future - in a way that providing people with an equivalent flow of income does not. The idea of

6944-550: The abolition of the fund. Her Majesty%27s Government King Charles III [REDACTED] William, Prince of Wales [REDACTED] Charles III ( King-in-Council ) [REDACTED] Starmer ministry ( L ) Keir Starmer ( L ) Angela Rayner ( L ) ( King-in-Parliament ) [REDACTED] Charles III [REDACTED] [REDACTED] [REDACTED] The Lord Reed The Lord Hodge Andrew Bailey Monetary Policy Committee The government of

7068-713: The account, except for the cost of selling shares (such as dealing charges) in equity accounts. On 24 May 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the Treasury David Laws MP announced that the £250 top up payments into the child trust fund would cease in August 2010, with no payments for newborns from the end of 2010. The Savings Accounts and Health in Pregnancy Grant Act 2010 facilitates

7192-494: The best way to solve economic problems. Most were against either further privatisation or further nationalisation, although they were overwhelmingly favourable to increasing taxation and government spending. The membership was also heavily against additional restrictions on trade unions. Liberal Democrat policy has generally been favourable to social welfare spending. During the 2000s, the party made pledges for major investment into health, education, and public services. In 1995,

7316-440: The cabinet ministers for the department and junior ministers within the department may answer on behalf of the government, depending on the topic of the question. During debates on legislation proposed by the government, ministers—usually with departmental responsibility for the bill —will lead the debate for the government and respond to points made by MPs or Lords. Committees of both the House of Commons and House of Lords hold

7440-471: The central government. Liberal Democrats (UK) The Liberal Democrats (colloquially known as the Lib Dems ) are a liberal political party in the United Kingdom, founded in 1988. They are based at Liberal Democrat Headquarters , near Westminster , and the current leader of the party is Ed Davey . They are the third-largest party in the United Kingdom , with 72 members of Parliament (MPs) in

7564-418: The change from the first past the post electoral system to an alternative vote top-up system . This was not the Lib Dems preferred option—they wanted full proportional representation —although Ashdown hailed it as "a historic step forward". Many Lib Dems were concerned by Ashdown's growing closeness with Labour; aware of this, he stepped down as party leader in 1999. Before he did so, the party took part in

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7688-411: The charity commissions) are legally more or less independent of the government, and government powers are legally limited to those retained by the Crown under common law or granted and limited by act of Parliament. Both substantive and procedural limitations are enforceable in the courts by judicial review . Nevertheless, magistrates and mayors can still be arrested and put on trial for corruption, and

7812-519: The coalition Cabinet. Of the 57 Liberal Democrat MPs, only two refused to support the Conservative Coalition agreement, with former party leader Charles Kennedy and Manchester Withington MP John Leech both rebelling against. Many Lib Dems opposed the move, with some favouring a coalition deal with Labour. As part of the coalition agreement, the Conservatives agreed to Lib Dem demands to introduce elected health boards, put forward

7936-408: The coalition badly damaged the party's electoral standing, and they lost 48 of their 56 MPs at the 2015 general election , which relegated them to fourth-largest party in the House of Commons. Under the leaderships of Tim Farron , Vince Cable and Jo Swinson , the party was refocused as a pro-Europeanist party opposing Brexit . In the 2019 general election , the party garnered 11.5 per cent of

8060-436: The confidence of the House of Commons. It requires the support of the House of Commons for the maintenance of supply (by voting through the government's budgets) and to pass primary legislation . By convention, if a government loses the confidence of the House of Commons it must either resign or a general election is held. The support of the Lords, while useful to the government in getting its legislation passed without delay,

8184-469: The course of the development of the policy up to implementation, it became increasingly focussed on encouraging the poor to save and to develop their financial skills, with less emphasis on the egalitarian redistribution of assets. According to the Institute of Public Policy Research The wealthy have always relied on assets to smooth the path into adulthood, but now every single child will be able to do

8308-664: The eight who contested their seats in the 2019 general election all lost their seats. However, the party did gain 4.2% in the vote, rising to 11.6%. Swinson herself narrowly lost her East Dunbartonshire constituency to the Scottish National Party's Amy Callaghan , forcing her to resign as leader the next day in accordance with the Liberal Democrat Constitution which mandates that the leader must also serve as an MP. Deputy Leader Ed Davey and Party President Sal Brinton then jointly assumed

8432-409: The exchequer to be a member of the House of Lords was Lord Denman , who served for one month in 1834. The British monarch is the head of state and the sovereign , but not the head of government . The monarch takes little direct part in governing the country and remains neutral in political affairs. However, the authority of the state that is vested in the sovereign, known as the Crown , remains

8556-456: The fact accounts allocated by HM Revenue and Customs are put into stakeholder products indicates that the government also believes equities are the best option over such a long period. CTF funds can be transferred between providers. Rules for transfers are similar to those for Individual Savings Accounts – customers should inform the new provider they wish to use and they will undertake the move. No penalty or fee can be imposed for transferring

8680-460: The former minister, Chris Huhne . The party's candidate, Mike Thornton , had been a local councillor for the party, and held the seat. In eighteen other by-elections held throughout the 2010 to 2015 Parliament, the party lost its deposit in 11; in the Rochester and Strood by-election held on 20 November 2014, it came fifth polling 349 votes or 0.9% of the total votes cast, the worst result in

8804-523: The funds in the account are exempt from income tax and capital gains tax , including at maturity. However, the 10% dividend tax payable on franked income (UK share dividends ) cannot be reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax benefits will be permanently lost. If vouchers were not invested within one year of issue, HM Revenue and Customs would open

8928-532: The government has powers to insert commissioners into a local authority to oversee its work, and to issue directives that must be obeyed by the local authority if the local authority is not abiding by its statutory obligations. By contrast, as in European Union (EU) member states, EU officials cannot be prosecuted for any actions carried out in pursuit of their official duties, and foreign country diplomats (though not their employees) and foreign members of

9052-474: The government in the form of a voucher for at least £250. In 2010/11, the Child Trust Fund policy was expected to cost around £520m, less than 0.5% of the £84bn UK education budget. Because the scheme allows for family and friends to top up trust funds, it has given a substantial boost to savings rates, particularly among the poor. According to the Children's Mutual , "In terms of changing people's behaviour, this

9176-766: The government on the statement. When the government instead chooses to make announcements first outside Parliament, it is often the subject of significant criticism from MPs and the speaker of the House of Commons . The prime minister is based at 10 Downing Street in Westminster , London. Cabinet meetings also take place here. Most government departments have their headquarters nearby in Whitehall . The government's powers include general executive and statutory powers , delegated legislation , and numerous powers of appointment and patronage. However, some powerful officials and bodies, (e.g. HM judges, local authorities , and

9300-485: The government to account, scrutinise its work and examine in detail proposals for legislation. Ministers appear before committees to give evidence and answer questions. Government ministers are also required by convention and the Ministerial Code , when Parliament is sitting, to make major statements regarding government policy or issues of national importance to Parliament. This allows MPs or Lords to question

9424-464: The government. Royal prerogative powers include, but are not limited to, the following: While no formal documents set out the prerogatives, the government published the above list in October 2003 to increase transparency, as some of the powers exercised in the name of the monarch are part of the royal prerogative . However, the complete extent of the royal prerogative powers has never been fully set out, as many of them originated in ancient custom and

9548-783: The history of the party. In the 2013 local elections , the Liberal Democrats lost over 100 council seats. In the 2014 local elections , they lost another 307 council seats and ten of their eleven seats in the European Parliament in the 2014 European elections . In the 2015 general election , the party lost 48 seats in the House of Commons, leaving them with only eight MPs. Prominent Liberal Democrat MPs who lost their seats included former leader Charles Kennedy , former deputy leaders Vince Cable and Simon Hughes , and several cabinet ministers. The Conservatives won an outright majority. Clegg then announced his resignation as party leader. The party lost over 400 council seats in

9672-399: The ideal of ‘ownership for all’." He adds that "At a time of rising wealth inequality, and widespread asset poverty, the old Liberal slogan of ‘ownership for all’ has never been more urgent." In April 2010, Julian Le Grand argued strongly against Conservative Party plans to means test the funds (limiting them to households on below £16,000 per year income), saying that "Confining CTFs to

9796-507: The introduction of all-women shortlists in selection, but not implemented them. The Liberal Democrats support a range of constitutional reforms, including by advocating a decentralised federal structure for the United Kingdom, including devolving power to the regions of England . The party supported devolution to Scotland and Wales enacted by the Labour government under Tony Blair . The party has consistently supported electoral reform to produce more proportional results. On social issues,

9920-541: The late winter and spring which saw many politicians infected, the party's board initially pushed the leadership election back to May 2021. The decision was reversed in May 2020 to hold the leadership election in July 2020. On 27 August 2020, Ed Davey was elected as leader of the party, by a margin of almost 18,000 votes. On 13 September 2020, Daisy Cooper was announced as the party's new Deputy Leader. In September 2020, it

10044-525: The merger; finally, the memberships of both parties were balloted and both produced support for unification. Those in both parties opposed to unification split to form their own breakaway groups, in the form of the Liberal Party and the Continuing SDP . The Social and Liberal Democrats were formally launched on 3 March 1988. Steel and Maclennan initially became joint interim leaders. At

10168-432: The minds of the public." The Lib Dems calls for devolution or home rule for Scotland and Wales were enacted by Blair's Labour government in the late 1990s. The 1993 conference also called for the introduction of a bill of rights into the British constitution. Its 2001 manifesto included a commitment to lowering the voting age from 18 to 16. In 2013, an internal pressure group in the party called Liberal Democrats for

10292-447: The money unwisely, that the policy is overly restrictive in not allowing parents to access the money, and that the money could better be spent on pre-school development programmes. Their policy has been criticised by Stuart White, who notes various historical examples of CTF-like policies proposed by Liberals in the past, and argues that the Child Trust Fund policy "gives direct expression to a deep, historic Liberal (and SDP) commitment to

10416-664: The other major political parties of the United Kingdom. The party is a federation of the English , Scottish , and Welsh Liberal Democrats . The party is in a partnership with the Alliance Party of Northern Ireland , while still organising there. Internationally, the party is a member of the Liberal International and the Alliance of Liberals and Democrats for Europe Party , with its MEPs formerly affiliated to

10540-487: The parents/legal guardians of the child until the child reaches the age of 16. At this point, the child will have the option to take over management of the account including choice of provider and investment decisions. However, they will still not be able to withdraw funds from the account until reaching 18. The government has stated that they will be introducing a programme of education in personal finance in schools to enable 16-year-olds to competently manage their CTF. All of

10664-699: The parties merged as the Social and Liberal Democrats , adopting their present name just over a year later. Under the leadership of Paddy Ashdown and later Charles Kennedy , the party grew during the 1990s and 2000s, focusing its campaigns on specific seats and becoming the third-largest party in the House of Commons. In 2010, under Nick Clegg 's leadership, the Liberal Democrats were junior partners in David Cameron 's Conservative-led coalition government , in which Clegg served as deputy prime minister . Although it allowed them to implement some of their policies,

10788-507: The party advocated continued membership of the European single market and a referendum on the Brexit withdrawal agreement , the Liberal Democrats' vote share dropped 0.5% to 7.4%, its lowest percentage ever, but produced a net gain of four seats. Farron then resigned; in July 2017 Vince Cable was elected leader unopposed . He called for a second referendum on the UK's relationship with

10912-471: The party announced a plan to put £2 billion into education, including nursery places for under fives, while its 2005 manifesto included a commitment to use £1.5 billion to decrease class sizes in schools. In the 2000s, the party also pledged to abolish tuition fees for university students, and in the build-up to the 2010 general election, Clegg pledged that under a Lib Dem government this would be achieved over six years. In 2004, it pledged to add £25

11036-537: The party as centre-left, though during the Cameron–Clegg coalition they were seen as centrist. On economic issues, the party has usually been positioned between the Conservatives and the Labour Party , though typically closer to the Labour Party. There is a degree of ideological diversity among members of the Liberal Democrats, with a wide range of opinions on most subjects. A key ideological influence on

11160-438: The party at different times, each with its own ideological bent, some leaning towards the centre-left and others the centre. The party is a member of the Alliance of Liberals and Democrats for Europe Party (ALDE), and Liberal International . It calls for constitutional reform, including a change from the first-past-the-post voting system to proportional representation . Emphasising stronger protections for civil liberties ,

11284-537: The party had taken "big knocks" due to a perception that the coalition government had returned to the Thatcherism of the 1980s. As part of the deal that formed the coalition, it was agreed to hold a referendum on the Alternative Vote , in which the Conservatives would campaign for First Past the Post and the Liberal Democrats for Alternative Vote . The referendum, held on 5 May 2011, resulted in First Past

11408-579: The party has advocated for the United Kingdom's continued membership of the European Union. The party supports liberal interventionism , and supported the war in Afghanistan , later opposing the 2003 invasion of Iraq due to its lack of support from the United Nations . The party has also faced internal division over the issue of nuclear weapons . The party has a number of factions representing different strains of liberal thought. Although

11532-437: The party is liberal and progressive. It has consistently supported LGBT rights and drug reform. The party is internationalist and pro-European. They have consistently supported policies of European integration, including long-term advocacy of the United Kingdom adopting the euro , though they have opposed the establishing of a European army . Both before and after the 2016 United Kingdom European Union membership referendum ,

11656-432: The party polled well, with one poll showing the party with 20% (within 4% of Labour) as late as 28 October. Nonetheless, during the campaign period the party's fortunes dwindled, and leader Jo Swinson received negative reviews. In the election, the Liberal Democrats lost ten seats from the previous parliament and one from the previous election, returning 11 MPs. Of the nine new MPs who joined between June and October 2019,

11780-540: The party promotes social-liberal approaches to issues like LGBT rights , drug liberalisation , education policy and criminal justice . It favours a market-based economy supplemented with social welfare spending. The party has been described as progressive , and is internationalist and pro-European , and supported the People's Vote for the continued UK membership of the European Union and greater European integration , having previously called for adoption of

11904-438: The party put forward plans for the introduction of fixed term parliaments , something it would later secure in the coalition government of 2010 to 2015. Also in 1993, it proposed state funding for political parties. The Liberal Democrats have long included a commitment to proportional representation in their manifestos. According to the New Statesman , this is the "one policy with which the Liberal Democrats are identified in

12028-601: The party underwent a period of consolidation, particularly on local councils. In the 1994 local elections , it came second, pushing the Conservatives into third place. In the 1994 European Parliament elections , it gained two Members of the European Parliament (MEPs). In 1993, the party was damaged by allegations of racism on the Liberal Democrat-controlled council in Tower Hamlets; it faced additional problems as its distinctive centrist niche

12152-527: The party's MPs, including Nick Clegg, signing the Vote for Students pledge to oppose any increase in student tuition fees prior to the 2010 general election. In November 2010, The Guardian accessed internal party documents on the subject written prior to the election. These revealed that the party had planned to abandon the tuition fee policy after the election had taken place, as part of any hypothetical coalition agreement with either major party. Clegg later made

12276-768: The party's Youth and Student League put forward a motion calling for the abolition of the monarchy and the introduction of an elected head of state . The 2000 party conference produced a call for the 1701 Act of Settlement to be reformed so as to allow the heir to the throne to marry a Roman Catholic, while the party's 2001 manifesto called for the disestablishment of the Church of England. The party's endorsement of secularism dates back to 1990, with standing policy favouring total separation of church and state . The 1999 membership survey found that most favoured free markets and individual responsibility; they were nevertheless split on whether or not they regarded private enterprise as

12400-510: The party's federal executive and federal policy committees. In 2001, Kennedy suspended the Joint Cabinet Committee with Labour. The media characterised him as "Inaction Man" and accused him of lacking a clear identity and political purpose; later criticism also focused on his alcoholism. In the 2001 general election , the party fielded 639 candidates and made a net gain of 6, bringing its total of seats to 52. Following

12524-448: The party's stance on rejoining the EU, he said "We are not a rejoin party, but we are a very pro-European party." This caused anger to some Liberal Democrat members and a few days after Davey wrote a blog post clarifying his position. He stressed the Liberal Democrats were "committed to the UK being members of the European Union again" and insisted that members may have "misinterpreted" what he said on The Andrew Marr Show and that once he

12648-433: The period of absolute monarchy , or were modified by later constitutional practice. As of 2019, there are around 120 government ministers supported by 560,000 civil servants and other staff working in the 24 ministerial departments and their executive agencies . There are also an additional 20 non-ministerial departments with a range of further responsibilities. In theory, a government minister does not have to be

12772-400: The poor would be divisive, and would result in low take-up and stigma. A universal endowment is a badge of citizenship." He added that if funding had to be cut from the scheme, it would be better to reduce the government's top-ups, and keep the scheme universal. The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they see fit. CTFs are managed by

12896-413: The positions of acting co-leaders of the party. Brinton was at the end of the year (31 December 2019) replaced by Mark Pack as Party President and acting co-leader while Mike Dixon remains the party CEO. The Liberal Democrats' federal board set out a timetable in January 2020 which stated that a new party leader would be elected in July 2020. Due to the outbreak of COVID-19 in the United Kingdom in

13020-409: The proposals by backbench Conservative MPs. Claiming the coalition agreement had been broken, Clegg stated that Liberal Democrat MPs would no longer support changes to the House of Commons boundaries for the 2015 general election. The Lib Dem Secretary of State for Energy and Climate Change Chris Huhne in 2011 announced plans for halving UK carbon emissions by 2025 as part of the "Green Deal" which

13144-406: The right to vote on party policy, under a one member, one vote system. The party also allows its members to vote online for its policies and in the election of a new leader. In 1981, an electoral alliance was established between the Liberal Party , a group which descended from the 18th-century Whigs , and the Social Democratic Party (SDP), a splinter group from the Labour Party . In 1988,

13268-513: The same. The lumpy costs, the risky decision, and upfront investment involved in making ones way in life will be eased, whether that means spending money on training, starting a businesses - or simply buying the suit needed to attend an interview... CTFs recognise that assets, not just income, can bring security and opportunities. Sherraden argued that possessing wealth in your early adulthood improves life outcomes by its effect of changing attitudes: Income only maintains consumption, but assets change

13392-655: The social liberals, represented by the Social Liberal Forum (often abbreviated to the SLF), are the majority, factions that advocate for more economically liberal positions include Liberal Reform (often abbreviated to LR) and the "Orange Bookers", named after The Orange Book: Reclaiming Liberalism ; The Orange Book is most often associated with former deputy prime minister Nick Clegg , who contributed to it, along with former Liberal Democrat leader Vince Cable and incumbent leader Ed Davey . Additionally, there

13516-433: The source of executive power exercised by the government. In addition to explicit statutory authority , the Crown also possesses a body of powers in certain matters collectively known as the royal prerogative . These powers range from the authority to issue or withdraw passports to declarations of war. By long-standing convention, most of these powers are delegated from the sovereign to various ministers or other officers of

13640-666: The sovereign, although this authority is exercised only after receiving the advice of the Privy Council . The prime minister, the House of Lords, the Leader of the Opposition, and the police and military high command serve as members and advisers of the monarch on the Privy Council. In most cases the cabinet exercise power directly as leaders of the government departments , though some Cabinet positions are sinecures to

13764-400: The start of Edward VII 's reign in 1901, by convention, the prime minister has been an elected member of Parliament (MP) and thus answerable to the House of Commons, although there were two weeks in 1963 when Alec Douglas-Home was first a member of the House of Lords and then of neither house. A similar convention applies to the position of chancellor of the exchequer . The last chancellor of

13888-420: The start, it claimed 19 MPs, 3,500 local councillors, and 100,000 members. In its first leadership election, Paddy Ashdown defeated Alan Beith . Ashdown saw the Liberal Democrats as a radical, reforming force, putting forward policies for introducing home rule for Scotland and Wales, proportional representation, transforming the House of Lords into an elected Senate, and advancing environmental protections. At

14012-530: The supreme decision-making committee, known as the Cabinet . Ministers of the Crown are responsible to the House in which they sit; they make statements in that House and take questions from members of that House. For most senior ministers this is usually the elected House of Commons rather than the House of Lords . The government is dependent on Parliament to make primary legislation , and general elections are held every five years (at most) to elect

14136-436: The vote on an anti-Brexit platform, but this did not translate into seat gains, with Swinson losing her own seat. However, the party gained hundreds of seats on local councils under the leadership of Ed Davey , being especially successful in the 2022 , 2023 , and 2024 local elections . Davey is the party's first leader since Ashdown in the 1990s to win four by-elections in the space of one Parliament. This success continued at

14260-507: The way people interact with the world. With assets, people begin to think for the long term and pursue long-term goals. In other words, while income feeds peoples' stomachs, assets change their minds. Child trust funds were opposed by the Liberal Democrats at the 2005 general election with the manifesto pledging to move the money into early years programmes instead. Liberal Democrats have variously argued that recipients may spend

14384-473: Was able to clarify "people were completely relaxed". Under Davey, the Liberal Democrats seized the traditional Conservative constituency of Chesham and Amersham in a by-election in which Sarah Green overturned a 16,000 majority in June 2021 and then repeated a similar feat in North Shropshire in December 2021 when Helen Morgan overturned a 23,000 majority. In the 2022 local elections ,

14508-405: Was balloted on the idea: after it produced 57.4% in favour of the merger, Owen resigned as leader, to be replaced by Bob Maclennan . A Liberal conference in September found delegates providing a landslide majority for the merger. Formal negotiations launched that month and in December it produced a draft constitution for the new party. In 1988, Liberal and SDP meetings both produced majorities for

14632-473: Was in his late sixties; in October he resigned and Vince Cable became acting leader. In December 2007, Nick Clegg narrowly beat Chris Huhne to take the party's leadership. Clegg's reshuffle of the leadership team was seen by many as a shift to the right; under Clegg, the party moved away from the social democratic focus it displayed previously. It rebranded itself as a party that would cut rather than raise taxes and dropped its hard pro-EU position. In

14756-547: Was in the 2010 Liberal Democrat manifesto. The Lib Dems lost over 300 councillors in the 2012 local elections , leaving them with fewer than 3,000 for the first time in the party's history. In June 2012, it was reported that membership of the party had fallen by around 20% since joining the coalition. In February 2013, the party won a by-election in Eastleigh , the Hampshire constituency that had previously been held by

14880-553: Was not popular with voters and faced a resurgent Conservative Party under new leader David Cameron ; in the May 2007 local elections , the party experienced a net loss of nearly 250 seats. In that year's Scottish Parliament election, the Scottish National Party (SNP) secured the largest vote and the Lib Dem/Labour coalition ended. Campbell was frustrated at the constant media focus on the fact that he

15004-508: Was published. Written largely by centre-right economists in the party, it sparked discussions about Liberal Democrat philosophy and brought criticism from the party's social-liberal wing. In the 2005 general election , the Lib Dems secured 62 seats, the most the Liberals had had since 1923. Kennedy however faced growing calls within the party to resign after admitting that he had been treated for alcoholism; in January 2006 he stepped down under pressure even though his admission wasn't damaging to

15128-476: Was revealed by the party's new campaigning chief that the Liberal Democrats had started planning a four-year drive to woo "soft conservatives ". Cooper said the party could find a route forward by appealing to voters that had always thought of themselves as conservatives but who opposed the current direction of the Conservative Party under Boris Johnson . When Davey was asked by Andrew Marr about

15252-678: Was the worst election result for an established third party since the 1950s. Its prospects were buoyed after it won the 1990 Eastbourne by-election , followed by-election victories in Ribble Valley and Kincardine and Deeside . In the 1991 local elections it secured a net gain of 520 seats. In the 1992 general election , it secured 17.8% of the vote and 20 seats in the House of Commons: nine of these were in Scotland and five were in Southwest England. Between 1992 and 1997,

15376-408: Was threatened by the rise of Tony Blair and New Labour , a project which pushed Labour to the centre. At the 1997 general election , it fielded 639 candidates, securing 46 MPs, the greatest number that the Liberals had had since 1929. These were concentrated in Southwest England, Southwest London, and areas of Scotland. Although Blair's Labour won a landslide victory in 1997 and did not require

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