Trust fund

Catherine21

Is this true that the goverment has a Trust fund for us all and if we claim benefits it comes out of our Trust fund

Morgan_Scope

Hello @Catherine21. Where did you read this? No, it is not true.

Benefits and finacial support people receive are funded through tax and national insurance contributions, I could explain more about how that works if you would like?

But in short, no, there is no individual Trust Fund for each person, and benefits are not "withdrawn" from such a fund. They are part of the national welfare system funded by the taxpayer.

Catherine21

https://forum.scope.org.uk/discussion/comment/938638#Comment_938638

Oh OK so much false information yes pls be intreasting to understand

MW123

https://forum.scope.org.uk/discussion/125317/trust-fund

Hi Catherine, I can understand why you might think that, but no, the government doesn't have a separate trust fund for each person. The benefits system is actually funded through general taxation and National Insurance contributions. I think you might be confusing this with the Child Trust Fund (CTF) scheme, which the previous Labour government set up for children born between 2002 and 2011.

Under the CTF scheme, the government initially deposited money into each child's account £250 for most children, or £500 for those from lower-income families. Parents and family members could then add their own contributions. The money would then be available for the child to access when they turned 18. However, the CTF scheme was discontinued in 2011, so no new accounts have been set up since then.

Catherine21

https://forum.scope.org.uk/discussion/comment/938647#Comment_938647

Oh OK Thankyou so that's why it was worrying if Reform got or gets in as they wanted to abolish NI and come out of ECHR I Hope your well

Morgan_Scope

Hello @Catherine21, I'm glad @MW123 was able to explain it a little more for you and reassure you about this. If you have any other questions please do ask.