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Child Trust Fund

In the 2003 Budget, the Chancellor announced the introduction of the Child Trust Fund.  This is a vital element of the Governments savings strategy which aims to:

• Help people understand the benefits of saving and investing
• Encourage parents and children to develop the savings habit and engage with financial institutions
• Ensure that in future all children have a financial asset at the start of adult life to invest in their future
• Build on financial education to help people make better financial choices throughout their lives

Children born in the UK on or after 1 September 2002 will receive an initial endowment of £250 from central government paid into their very own child trust account.  The account belongs to the child.  The child (and no-one else) can only access the account when they turn 18.

Children living in low-income families will be given an additional £250.  The government will make a further payment when the child reaches seven years of age.

Entitlement to a Child Trust Fund will automatically be linked to child benefit so it will not be necessary to make a specific claim for the Child Trust Fund.  Child Trust Funds became available in April 2005.  Vouchers are sent to the Child Benefit claimant, usually the parent.  This voucher is then used by a person who has parental responsibility for the child to open a Child Trust Fund account with the provider of their choice.  If the voucher has not been used to open an account within 12 months of its issue, the Government will open an account on the child’s behalf.

Family and friends will be able to contribute up to £1200 a year between them to the fund.  The point of the fund is to build up a stock of assets for the young person to reinvest or use when they reach 18 years of age, giving them added security and opportunity in adulthood.  Financial education will also help individuals to make better financial choices throughout their lives.

If your child was born on or after 6th April 2005, the voucher will be worth £250.

If your child was born on or before 5th April 2005 the voucher will be worth slightly more than £250 depending on when your child was born. You can check the amount using the table below

You may have claimed Child Benefit some time ago because your child was born after 1st September 2002 but before the availability of CTF accounts. The Inland Revenue will be sending out vouchers for all eligible children for whom Child Benefit has been claimed. 

If you have not received a CTF voucher for your child, you should contact the number below.

Further information about Child Trust Funds can be found at www.childtrustfund.gov.uk or contact the CTF Helpline on 0845 302 1470.