CTF contributions hit £500m - Savings - News - Moneyfacts


CTF contributions hit £500m

CTF contributions hit £500m

Category: Savings

Updated: 31/03/2010
First Published: 31/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Child Trust Funds (CTFs) have been topped up by more than £500 million by parents and relatives since the launch of the products almost five years ago.

More than 4.5 million children in the UK have been given a CTF since they were introduced in April 2005, Family Investments has said, and another £300 million is predicted to be paid into the funds before the end of 2010.

It is thought that young adults will inherit a combined £2.5 billion each year from 2020 when the first generation of children gain access to their funds.

"The CTF is a groundbreaking savings initiative that means every eligible child in the UK will now have a savings pot once they reach 18," John Reeve, chief executive of Family Investments, said.

"The CTF will make an enormous difference to the social and economic fortunes of a generation and help develop a savings culture in the UK when we most need it."

The scheme, whereby eligible children receive a £250 voucher at birth and on their seventh birthday, with parents and relatives encouraged to top up the accounts by up to £1,200 a year, has been praised since its launch.

However, the future for CTFs is unclear; Labour has pledged to carry on the scheme if the party is elected in the coming months, but the Conservative Party has said it will scrap CTFs for all but the poorest families as part of the effort to cut the national deficit.

The Liberal Democrats have said they will totally do away with the programme in the event of being elected to run the country.

Find the best savings account - Compare child trust funds

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!