Norwich Union and The Children’s Mutual have announced a new alliance today, and letters of intent have been signed to launch a Child Trust Fund product into the market in 2005.
Norwich Union and The Children’s Mutual have announced a new alliance today, and letters of intent have been signed to launch a Child Trust Fund product into the market in 2005.
The Child Trust Fund is an initiative announced by the Government in the Budget of 2003 and is due to be launched during 2005. Each child born on or after 1 September 2002 will receive an initial endowment of Ł250 with a further payment when they reach the age of seven. Family and friends will be able to contribute up to Ł1,200 a year between them into the fund. Children will not pay any income or capital gains tax on their child trust fund savings.
Following the announcement by the Treasury in February 2004 that the price cap on the Child Trust Fund was to be set at 1.5%, Norwich Union has reviewed how it could participate in this savings initiative.
Norwich Union’s director of product strategy, Simon Quick, said: "Following a period of investigation, we have agreed to an alliance with The Children’s Mutual to market and distribute the Child Trust Fund. We are supporting this important initiative, we see the Child Trust Fund as assisting in the marketing of the Sandler range of products and we are keen to support the Government in encouraging people to save.
David White, chief executive of The Children’s Mutual, said: "The Child Trust Fund will help to get the whole issue of saving for children’s futures more onto people’s radar – something that’s of vital importance to the nation’s youngsters. The power of key brands such as The Children’s Mutual and Norwich Union working together will help families in a way not seen before."
-ends-
Press office contacts:
James Evans, Norwich Union Life, 01904 452791 07790 487105
David White, The Children’s Mutual, 01892 707362 07860 397769
Notes to editors
Norwich Union is the UK’s largest insurer. It is the largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business in the UK.
Norwich Union’s news releases and a selection of images are available from Aviva’s internet press centre at www.aviva.com/media.
The Children's Mutual mission is to help parents, grandparents and families fulfil their hopes for today's children. It offers a range of savings plans, which are specially designed to do this, by combining the benefits of our 122-year heritage as a trusted mutual society with the latest financial expertise.
The Children’s Mutual is a trading name of the Tunbridge Wells Equitable Marketing Group.