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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 themselves.

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.”

Notes

  1. The statistics can be found on the HMRC website via www.hmrc.gov.uk/stats/child_trust_funds/child-trust-funds.htm  
  2. 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 account.
  3. 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. 
  4. 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.
  5. Further information is available to parents on the CTF website, www.childtrustfund.gov.uk , 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

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