Lib-Dem attack on baby bonds

Charles Kennedy today accused Labour of wasting millions of pounds of taxpayers' money on "unnecessary" child trust funds.

The Liberal Democrat leader said the trust funds were too expensive and delivered "few real benefits".

Under the scheme, newborns will be given a £250 "baby bond" which they will be able to draw on at the age of 18.

Mr Kennedy said today that the money would be better spent on reducing class sizes. He said: "What good does it do children to lock this money away, when it could be invested now in helping to give every child the best start we can?

"In fact, Labour's Child Trust Fund scheme locks up much needed resources. It is expensive, unnecessary and delivers few real benefits."

Speaking at an early years centre in Islington, Mr Kennedy said it would be "more farsighted" to spend the £250 million-a-year cost of the bonds on reducing class sizes for five- to seven-year-olds.

"Smaller class sizes reduce paper work for teachers while increasing the time to do the work they are trained for and enjoy - interaction with their pupils," he said.