Jamaica 60 HOPE
PM announces trust fund for under privileged children to bridge wealth gap
PRIME MINISTER Andrew Holness said yesterday that his Government is seeking to close Jamaica’s wealth gap, announcing a trust fund to benefit underprivileged children, which will be accessible when they become 18 years old.
Holness, in a four-hour-long contribution to the 2024-2025 Budget Debate in the Lower House, said Jamaican children from low-income families reach adulthood without household savings to give them a start in life.
He said this perpetuates the cycle of poverty, which must be broken.
Announcing the Government’s intention to establish a Jamaica 60 HOPE (Hope, Opportunity, Prosperity, and Empowerment) For Children Trust Fund, Holness said this would help to close the wealth gap and address the issue of intergenerational poverty.
He said by creating a trust account to specifically cater to vulnerable children, each child would be eligible for a long-term savings account funded through annual contributions from the Government.
Holness said parents, guardians, or other donors would also be able make deposits to the account for the future benefit of the child.
He said the accumulated funds, including interest, would be accessible on or after the child’s 18th birthday for specific purposes such as education, the purchase of a home or commercial property, or business investment.
“Any Jamaican child born on or after the 60th anniversary of our independence (August 6, 2022) who is part of a PATH household or a ward of the State will be eligible for the programme,” said Holness.
He said the idea behind the programme is to provide children with a lump sum to give them a start in life upon attaining adulthood.
Holness said the Government would also explore alternatives to establish and manage the programme, which could be administered through the National Insurance Fund or through private insurance companies.
“This, I believe, is a groundbreaking initiative to truly grapple with inequality in the society,” said Holness.
He said from a historical perspective, there are countless households in Jamaica without an endowment.
“There is no asset passed down to them from generations. The only way that they are able to create any wealth is through their labour, through the dint of their effort, literally pulling themselves up by their bootstrap,” said Holness.
“Some people will be able to do that. Some people are driven to do that, but there are a large number of Jamaicans who are not able to do that,” Holness added.
‘WORLD CUP-LEVEL ECONOMY’
He said the Government has a duty to, as the country’s economy grows, break intergenerational poverty and correct structural inequality.
Bragging that Jamaica now has a “World Cup-level economy”, Holness called the initiative a great intention, noting that the amount is a small but great step in the right direction to establish a more equitable society.
The prime minister said the initial target at the end of that saving period is between $600,000 and $800,000.
At the same time, Holness announced that 1,000 tertiary students who maintain high academics are to benefit from a $200 million grant initiative.
Holness said the grant, which will amount to a maximum $200,000 per student, will be administered through the Ministry of Education in conjunction with the Constituency Development Fund.
Each constituency will be allocated approximately $3,000,000.
“This administration is serious about giving our students the opportunities to access higher education and skills as we seek to move from a low-wage economy to a high- productivity economy,” said Holness.