Family Investments

Family Investments responds to the HMRC Quarterly Child Trust Fund Statistics

09th January 2009

HM Revenue and Customs (HMRC) today released the quarterly statistics for Child Trust Funds, revealing the number of CTF accounts opened by parents. The statistics showed there was very little change in the rate of take-up of Child Trust Funds.

The Economic Secretary, Ian Pearson MP, also announced that over four million Child Trust Fund accounts have been opened since they were introduced in 2005.

Kate Baker, Head of Savings and Investments at Family Investments, the UK’s leading Child Trust Fund provider, comments:

"We agree with the Government that the introduction of the Child Trust Funds is a great achievement but the HMRC’s latest figures reveal that there has been no real change in the percentage of parents opening a CTF account for their child. More than a quarter of parents are still allowing vouchers to lapse.

"The low take up amongst poorer families is a particular concern as CTFs were designed to help these families the most. Research has shown that lower socio-economic households are less likely to set up a CTF for their child and, more pertinently, once an account has fallen into the revenue allocation system, it is less likely to receive additional contributions which, in my opinion, are vital in the creation of an asset that might facilitate social mobility.

"Both Government and providers have been striving to generate greater levels of take up, particularly with the introduction of “reminder mailings” last year, However, we believe that take up should be at a much higher level and that this can only be achieved through a simplification of the entire scheme.

“Family Investments has come up with an ambitious plan of action to help overcome these problems and unlock more of the scheme’s enormous potential. There is much that can be done including simplify the scheme so that there is only one clear option, the stakeholder account, and incentivising early uptake of the CTF via a gift or bonus.

“More recently the Government has taken steps to make it easier to take out a CTF by telephone or online by removing the need to send in a voucher. Family Investments lobbied for these measures and welcomes their introduction in April 2009. We believe that this will make a significant difference to the amount of accounts open to parents.”

 

 

 

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Family Investments does not provide advice. If you have any doubts about the suitability of this product you should seek independent financial advice.

Family Investments is a trading name of Family Assurance Friendly Society Limited (incorporated under the Friendly Societies Act 1992 Reg. No. 939F), Family PEP Managers Limited (Co. No. 2934967), Family Investment Management Limited (Co. No. 1915516) and Family Equity Plan Limited (Co. No. 2208249) which are authorised and regulated by the Financial Services Authority (25 The North Colonnade, Canary Wharf, London, E14 5HS). Family Enterprise Limited (Co. No. 2489291) is not authorised or regulated by the Financial Services Authority. Registered in England and Wales at: 16-17 West Street, Brighton, East Sussex, BN1 2RL. For further details see the Important Information. Site last updated 31/08/2010.

© Family Investments | Provider of Child Trust Fund accounts (opened with the Government Child Trust Fund voucher), other investments for children and child investment accounts.