Press Release
MP Urges Parents To Use Their Child Trust Fund
Parents in our communities are being urged to use their Child Trust Fund vouchers to ensure their children have savings behind them when they reach 18 years of age. The Government introduced the Child Trust Fund (CTF) to help save for a child's future and to promote financial education and a savings culture amongst young people. The Child Trust Fund is a tax-free long-term savings and investment account for children born on or after 1 September 2002. Children are eligible provided they live in the UK, and have claimed Child Benefit.
Local MP Tom Clarke, speaking during the first-ever Child Trust Fund Week, which runs from January 15th to 20th said:
“I am trying to raise awareness of this comparitivlely new benefit. I am calling on parents to use their £250 vouchers to open an account and it may be that close family or even friends can contribute to the child’s account building a nest egg for the child’s future.
The MP announced:
“New figures published this month show that in my constituency 4356 vouchers have been issued with the 2665 accounts opened by parents. Although the majority of parents have opened accounts, the remaining 1691 are still to be opened or will be automatically opened by HM Revenue & Customs if the vouchers are not used after 12 months so that no child loses out”.
Mr Clarke said:
“The Child Trust Fund is a great way of saving for a child’s future. All parents with children born since September 2002 will have received a £250 voucher to get an account started. The Government will add an extra £250 for families on lower incomes, and there will be further top-ups when children reach the age of 7.
“I’m pleased that 2665 parents in my constituency have already opened an account for their child, but I want to encourage all eligible parents to open an account and get friends, family, grandparents and the whole family involved”.
The MP continued:
“I would like to take this opportunity to single out Grandparents for special praise. I have said on many occasions that we live in a family culture where almost without exception there is a very special bond between Grandparents and their Grandchildren. In fact I have observed acts of exceptional generosity from Grandparents in both time and gifts for their Grandchildren”.
“There are countless examples of Grandparents who build their own social lives and timetable activities around their Grandchildren who in turn benefit greatly from this extended family care and affection. Perhaps Grandparents may view the Child Trust Fund as a beneficial way of contributing to the future of their Grandchildren – but I must emphasise only if they want to but above all else only if they can afford to do so”.
The MP added:
“Every child in receipt of child benefit receives a voucher worth £250 to get their account started. Parents can choose which way to invest the voucher and who to invest it with. Parents, family and friends can contribute up to £1,200 a year in total into the account. The Government is currently consulting on additional payments as children reach secondary school”.
Treasury Minister Ed Balls Launching Child Trust Fund Week, said:
“The Child Trust Fund’s success has exceeded our expectations and nearly 2.5 million accounts have now been opened across the country. But working with Tom Clarke and other MPs I want to do more to encourage parents, grandparents and whole families to get engaged and make the most of the opportunities the Child Trust Fund presents.”