Jan 2007

MOST PARENTS ARE NOW USING THEIR CHILD TRUST FUND

This week is the first-ever Child Trust Fund Week, helping to ensure that all parents are aware of the benefits for their children. Stafford’s Labour MP David Kidney is urging parents in Stafford constituency to make sure that they are getting the best out of the Child Trust Fund for their family:
“The whole point of this scheme is to ensure that all children have savings behind them when they reach 18.Most parents in Britain have used their £250 vouchers to open an account. I just ask parents in this area to ensure that they have done so and to ask friends and family if they have opened the new accounts as well. It is helping to provide every child with an account in which to build up a nest egg for the future.
“The Child Trust Fund is a great way of saving for a child’s future. All parents with children born since September 2002 will have received a £250 voucher to get an account started. The Government will add an extra £250 for families on lower incomes, and there will be further top-ups when children reach the age of 7.
“Where parents have not yet made use of the vouchers after 12 months, accounts will automatically be opened by HM Revenue & Customs so that no child loses out.”

Editor’s Notes: 

• Parents opening an account for their child have the choice of a number of different types of accounts, including ethical accounts and Shari’a accounts.

• A range of CTF providers are available – a full list and advice on how to choose an account are available on the CTF website at: http://www.childtrustfund.gov.uk/templates/Page____1242.aspx

• Building societies hold the majority of the cash-based Child Trust Fund accounts, around 440,000 in total.