Government sources have confirmed that the proposals for “baby bonds” and a new post of children’s commissioner will both be included in the Queen’s speech later this year. The initiatives have been pushed for by Brown, whose wife Sarah is expecting their second child in October. Their first child Jennifer died at just 10 days old in January last year.
The children’s commissioner will work closely with Margaret Hodge, the children’s minister, who was appointed in the last government reshuffle.
The idea of “baby bonds” is likely to prove much more controversial. Under Brown’s plan, a newborn child will have between £250 and £500, depending on the parents’ income, credited to a “child trust fund” as a kick-start to what the government hopes will be years of saving.
Parents and other relatives will be able to top up the fund to a limit of £1,000 in deposits per year and children will not be able to touch the money until they are 18. The first accounts are expected to be set up by 2005 and will attract interest at a commercial rate. The government is in talks with financial institutions on how the accounts will be set up.