Mr Mulholland said: 'The Child Trust Fund is a gimmick, giving people the idea the government is investing in their children, when in actual fact this scheme is tying up vast amounts of taxpayers' money.
'My wife, who is a primary school teacher, has taught several classes of 30 or more children. She tells me that there is nothing that would assist teachers more than reducing class sizes.
'Cutting the number of pupils she and other teachers have to teach would ensure more individual attention for pupils' educational and social development, and allow any special educational needs to be adequately addressed.
'It is time this scheme was scrapped and Gordon Brown started putting investment where it will have the maximum impact and where it would make the most positive difference to people's lives.'