Four millionth Child Trust Fund milestone reached
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The Economic Secretary, Ian Pearson MP, announced today that over four
million Child Trust Fund accounts have been opened since they were introduced in
2005, supporting the savings habit and providing children across the UK with a
lump sum when they reach 18. The latest figures show that, between the
introduction of the scheme in April 2005 and 15 December 2008, a total of 4.01
million accounts have been opened, with 3.07 million opened by parents
Ian Pearson said:
“The introduction of Child Trust Funds is a great achievement that will
ensure that every child in our country has their own financial asset when they
reach 18. These long-term investments will provide a generation of children with
an understanding of and an education in the benefits of saving for the future,
while reinforcing the savings habit.
“The figures released today show that over four million children now have
savings put aside for their future, thanks to the Child Trust Fund. We are
continuing to work to build on this success and 2009 will see the first
Government payments to seven-year-olds, as well as the roll-out of new financial
education resources for schools, as part of the My Money programme.”
- The statistics can be found on the HMRC website via
- The Child Trust Fund (CTF) was introduced for all eligible children born
in the UK on or after 1 September 2002, with a £250 voucher from the
Government to start off each child’s account, and a further £250 paid into the
account at age seven. Children from lower-income households receive an extra
£250 top-up at birth and at age seven. Parents, relatives and friends
can also contribute up to £1,200 per year, with no tax to pay on any gains in
- The Child Trust Fund (CTF) is a tax-relieved long-term savings and
investment account for children born on or after 1 September 2002. Children
are eligible provided they live in the UK, have Child Benefit claimed for them
and are not subject to immigration restrictions.
- No eligible child will miss out on a CTF account. If parents do not open a
CTF account for their child within one year, HMRC will automatically open an
account for the child.
- Further information is available to parents on the CTF website,
including practical tools such as an account chooser - to help parents select
the right account for their child - and a CTF calculator - to help parents
work out what the account could be worth at maturity.
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Article Published/Sorted/Amended on Scopulus 2009-01-14 12:10:26 in Tax Articles