An equal head start in life

The Nationalist Party’s proposed Child Trust Fund will ensure every child begins life with equal opportunities. The Child Trust Fund will not replace other child benefits.

Credit: Shutterstock.com

All children are born equal. However, not all children have equal opportunities. To address this inequality and to bridge the ever-growing gap between children who ‘have’ and those who ‘have not’, the Nationalist Party is proposing the setting up of a Child Trust Fund.

This proactive proposal is intended to give an equal financial head start to all children, irrespective of their family’s social and economic status, from the very start of their life journey.

In our proposal, the government will make an initial capital investment of €5,000, with the parents/guardians or significant others having the option to make further voluntary contributions. Since we have approximately 4,400 births annually, the government will invest €22 million every year. This should not be regarded as a cost but, rather, as a sound investment in human capital, comparable to expenditure on education, health and social welfare.

The money accrued over the years will be ring-fenced and can only be withdrawn after the child is 20 or older. The eligible beneficiaries must be children born in Malta from at least one

Maltese parent/guardian or holding a permanent residence status.

The capital investment will not replace any other child-support benefits, such as children’s allowances and/or other social benefits.

Based on workings of a conservative 2% annual return, the value of the policy when the child reaches 20 would be approximately around €7,430. On the other hand, in a growth of 5% annual return and/or aggregate of 6.5% return, the results would be that of approximately €13,260 and €17,260 respectively. Also, if parents or guardians would have contributed a further €500 annually, the same conservative workings would show a yield of €20,570, €28,520 in growth and €34,300 in aggregate scenarios. Once redeemed, it can be used to make independent life decisions, whether pursuing tertiary education, vocational training or a deposit for one’s first home.

The proposal comes at a time when social disparity and poverty is a growing concern.

According to the NSO, the at-risk-of-poverty or social exclusion (AROPE) rate in Malta for the latest available data of 2024 is 19.7% of the Maltese population. This percentage translates into 113,100 out of a population of 574,250!

On the other hand, using the same AROPE matrix, in 2024, 25.9% of our children were at risk of poverty or social exclusion. This translates into approximately 29,000 Maltese children.

While the concept of such a fund may be new in local social policy mind-set, similar schemes have long been successfully introduced in other countries, such as in the UK. Labour’s response that this proposal is a ‘copy-and-paste’ exercise is not only puerile but also politically immature, considering that a number of Labour’s social policies were ‘copied’ from other countries. The recent domestic violence law, for example, is the local version of Clare’s Law in the UK.

Finally, the proposed investment fund will not only provide financial support equally to all children but will also foster a culture of saving and long-term planning among families. By encouraging savings and investments, we are promoting financial literacy. Thus, we are being a catalyst to move from a culture of social dependency to one of empowerment.

Although this children’s investment fund represents a thoughtful approach to social policy, aiming to disrupt the cycle of poverty and give every child an equal start in life, financial support is nevertheless only one element of effective child-rearing.

Every child does not only need good financial backing but also a loving environment and a caring family. Without love, care and other core values, no child can ever grow to become a mature, responsible and honest citizen. Consequently, it is in our common interest that we support families and create a healthy environment for a child to grow.

Notwithstanding, this proposal gives an equal head start to every child, irrespective of its background. Our children deserve the best from us all.

(This article was published on Times of Malta – 16 November, 2025)