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01 April 2010

5 million children benefiting from Trust Funds

The Government today announced that five million Child Trust Fund (CTF) accounts have now been opened since they were introduced in 2005, supporting millions of families across the UK to save for their children’s future.

The latest figures show that between the introduction of the scheme in April 2005 and 15 March 2010, a total of 5.005 million accounts have been opened.
Exchequer Secretary to the Treasury, Sarah McCarthy-Fry MP said:

“Child Trust Funds are supporting families to save for their children’s future and will ensure that every child in the country has a financial asset on entering adult life. This April marks the 5th anniversary of the introduction of the CTF, and the accounts continue to be a great success.

“No child misses out on a Child Trust Fund, and today's figures show that over 5 million children now have savings set aside for their future,  thanks to the CTF.”

The Government set up the Child Trust Fund account in 2005 to support parents to save and invest in their children’s future, so that at the age of 18 they will have access to an important financial asset

Additionally, from April 2010, disabled children will also receive extra support, with an extra £100 a year payment from the Government into their CTF account, and £200 for severely disabled children.

Notes for Editors

1. The CTF statistics can be found on the HMRC website (opens in new browser window)

2. The 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 both initially and at age seven.  Parents, relatives and friends can also contribute up to £1,200 per year in total, with no tax to pay on any interest or gains in the account.

3. The 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 (opens in new browser window),  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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