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Easy to open child trust funds to increase take up

Easy to open child trust funds to increase take up

Category: Savings

Updated: 27/10/2010
First Published: 30/06/2009

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 It is now over 6 months old so the content may be out of date.

The new voucherless system of opening a child trust fund is predicted to help reverse a fall in the number of people taking up the accounts.

Latest figures from HM Revenue and Customs have revealed 74,000 child trust funds were opened during the three months to the end of March 2009, representing just 34% of the vouchers issued in that time.

In the previous quarter, half the parents who had the option to start an account did so.

However, since 6 April this year, child trust fund providers have been given the option to open accounts for parents over the telephone or via the internet without requiring them to bring in or post a voucher.

As a result, it is hoped that when the next set of figures are released, the participation rate will have improved.

Indeed, the child trust fund provider Family Investments has already revealed a 14% rise in account openings in the first month since the voucherless system was introduced.

"Child trust funds can have a real and positive impact on social mobility, but only if parents are encouraged to engage with the scheme from the birth of their child and simplicity is the key to this," said Kate Baker, Head of Savings and Investments at Family Investments.

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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 Any products featured may be withdrawn by their provider or changed at any time.

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