Should we gift every newborn £1,000 to invest?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 8 September 2023

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Every child could receive a pot of £1,000 at birth to be channelled into long-term investments in UK growth under proposals to give the young a leg up and revive a ‘stagnant’ economy.

The idea of a ‘New Generation Trust’ is part of a package of reforms that could add £225billion to the economy, says a report by the City of London Corporation.

A £1,000 payment to all newborn children would need to be invested - and it is claimed this could provide long-term capital for UK PLC.

It revives memories of the Child Trust Fund scheme launched by Gordon Brown two decades ago, and later scrapped by George Osborne – and that hasn’t exactly been a roaring success.

This week, Lee Boyce, Simon Lambert and Georgie Frost discuss the merits of the idea – and why whether this happens or not parents should start building a pot for children as early as possible.
It’s been another exciting week for savings – Santander has a new best buy easy-access deal, Moneybox has launched a top cash Isa and First Direct is offering five prizes of £12,500 for those who switch current account – including a £175 bonus for doing so.

Bank of England governor Andrew Bailey has been speaking in front of MPs at the Treasury Select Committee about base rate – are we close to the peak?

House prices saw their biggest slump since 2009 according to Halifax, with the average home falls £14,000 in a year – chiming with similar data from Nationwide.

And finally, electric cars are slumping in value – many models have lost 30 per cent or more in a year. Is now the time to buy, and what on earth is going on?

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and joining me and Simon Lambert today is Lee Boyce.
0:08.4	And coming up, a plan to revive our stagnant economy, hand every kid a grand to invest in it.
0:15.1	Simon explains all and looks at ways you can invest for your little and's futures.
0:19.0	Also today, Santander launches a Best Buy easy access account
0:21.7	paying 5.2%, but it's not the only bank offering blockbuster rates. Lee gives us rundown. Are we
0:30.1	nearly there yet on the base rate? The Bank of England Governor says maybe, but we probably aren't
0:35.3	there yet on falling house prices. And why are electric cars
0:38.9	suddenly getting so much cheaper? Is it time to buy? Don't forget, you can stay up to day with
0:43.5	all the latest breaking money news. Just go to this ismoney.co.uk or download the app.
0:48.8	Don't forget, you can stay on top of what's going on in the markets by tuning in to the
0:52.4	Digest and Invest podcast by Itoro. Go to your regular podcast platform and listen on the go. Digest and invest by Itora,
0:58.7	the podcast for those interested in trading and investing. But first, every child could receive
1:04.0	a pot of £1,000 at birth. This all sounds rather familiar, doesn't it, to be channeled into
1:09.9	long-term investments
1:10.9	in UK growth under proposals to revive a stagnant economy. Now, the idea of a new generation
1:18.1	trust is part of a package of reforms that could add $225 billion to the economy. So says a report
1:25.1	by the City of London Corporation. It revives memories of the
1:28.9	Child Trust Fund scheme launched by Gordon Brown two decades ago, if you remember, and later scrapped by
1:33.7	George Osborne. So Simon Lambert, there's a lot to unpick in this one. Not so much on the
1:39.9	detail of how we're going to fund giving every kid a thousand pounds to then invest in the
1:45.7	UK economy. But give us a bit of context. What is this about? Who are the City of London
1:52.1	Corporation? The City of London Corporation is an organisation that represents the City of London.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from This is Money, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of This is Money and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.