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Child Trust Fund popularity grows

Child Trust Fund popularity grows

Category: Savings

Updated: 27/10/2010
First Published: 19/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

There has been a rise in the number of Child Trust Fund (CTF) accounts opened by parents within a year of receiving their CTF voucher.

The latest figures from HM Revenue & Customs showed that 71% of all parents opened a CTF within the first year of their child's birth.

Designed to encourage parents to take the first steps to save for their children's future, it appears that the scheme is proving to be a success.

Yet in recent months, some politicians and commentators have suggested reducing or scrapping the CTF as a way to save government money.

John Reeve, CEO of Family Investments, believes this should not be allowed to happen: "This would fundamentally weaken the CTF and reverse the benefits it has begun to deliver."

"The CTF is a groundbreaking savings initiative that means every eligible child in the UK will now have a savings nest-egg once they reach age 18. Furthermore, over £22m is being added to CTFs by parents, family and friends every month, which demonstrates a burgeoning savings culture is being created."

"The CTF will make an enormous difference to the social and economic fortunes of a generation, which is why it is vital the government CTF contribution should be maintained for all."

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