Article date: 19 May 2004
Norwich Union and The Children’s Mutual have announced anew alliance today, and letters of intent have been signed tolaunch a Child Trust Fund product into the market in 2005.
The Child Trust Fund is an initiative announced by theGovernment in the Budget of 2003 and is due to be launched during2005. Each child born on or after 1 September 2002 will receive aninitial endowment of £250 with a further payment when they reachthe age of seven. Family and friends will be able to contribute upto £1,200 a year between them into the fund. Children will not payany income or capital gains tax on their child trust fundsavings.
Following the announcement by the Treasury in February 2004 thatthe price cap on the Child Trust Fund was to be set at 1.5%,Norwich Union has reviewed how it could participate in this savingsinitiative.
Norwich Union’s director of product strategy, Simon Quick,said: "Following a period of investigation, we have agreed to analliance with The Children’s Mutual to market and distributethe Child Trust Fund. We are supporting this important initiative,we see the Child Trust Fund as assisting in the marketing of theSandler range of products and we are keen to support the Governmentin 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 ofsaving for children’s futures more onto people’s radar– something that’s of vital importance to thenation’s youngsters. The power of key brands such as TheChildren’s Mutual and Norwich Union working together willhelp families in a way not seen before."
Press office contacts:
James Evans, Norwich UnionLife, 01904 452791 07790 487105
David White, The Children’s Mutual, 01892 707362 07860397769
Notes to editors
Norwich Union is the UK’s largest insurer. It isthe largest provider of life, pensions and investment products andone of the leading IFA providers. IFAs provide around 75% of thecompany’s long-term savings business in the UK.
Norwich Union’s news releases and a selection of imagesare 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 todo this, by combining the benefits of our 122-year heritage as atrusted mutual society with the latest financial expertise.
The Children’s Mutual is a trading name of the TunbridgeWells Equitable Marketing Group.