Child Trust Funds for all is essential to give young adults a financial head start
15 January 2010
HMRC figures show increased parental commitment to the Child Trust Fund scheme
HM Revenue & Customs (HMRC) quarterly statistics released today reveal a rise in the number of Child Trust Fund (CTF) accounts opened by parents within a year of receiving a CTF voucher.
John Reeve, CEO of Family Investments, the UK’s leading Child Trust Fund provider, comments:
“The latest HMRC figures show that 71% of all parents opened a CTF within the first year of their child’s birth. This shows that the initial Government CTF voucher is an effective way to encourage parents to take the first steps to save for their children’s future. The success of the CTF is engagement and the Government top up is a key factor in driving this.
“Some politicians and commentators have suggested reducing or scrapping Child Trust Funds as a way to save government money. 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.”
ENDS
For further information or an interview with John Reeve, please contact:
Matt Battersby
Hill & Knowlton
020 7973 5947
mbattersby@hillandknowlton.com
Emma Reynolds
Hill & Knowlton
020 7413 3153
emma.reynolds@hillandknowlton.com
About Family Investments
- Family Investments aims to be the trusted supplier of financial solutions for the family
- Family Investments currently looks after around £2.3 billion of family money for more than 1.5 million people in the UK
- Family Investments is a mutual with over 30 years experience providing investments for families. We are owned by our customers which means that we are directly answerable to them
- Family Investments is the UK’s favourite Child Trust Fund provider with 1.1 million Child Trust Fund accounts
- Our expertise is widely trusted and recognised, which is why we’ve been chosen to provide the Child Trust Funds of these high street names; Barclays Bank, Santander, Post Office, Sainsbury’s Bank, Yorkshire Bank, Clydesdale Bank, Coventry Building Society, Early Learning Centre, Northern Bank, Skipton Building Society and National Childbirth Trust, and additionally provide Post Office ISAs
- Family Investments won the Business in the Community Award in the 2009 Sussex Business Awards. This recognised Family’s highly successful community and volunteering work
- Family Investments is the trading name of Family Assurance Friendly Society and is authorised and regulated by the Financial Services Authority
About Child Trust Funds
- Child Trust Funds are available to all eligible children born since September 2002.
- Parents are sent a £250 voucher with which to open a Child Trust Fund and the Government then pays another £250 into the CTF when the child reaches 7 years.
- Parents with a household income of less than £16,040 receive double the amount of Government contributions.
- Parents have a year from receiving their voucher to open their child’s account. If they don’t, the HMRC will open an account with a nominated provider on their behalf.
- Parents, family and friends can add up to a combined total of £1200 to the fund each year.
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