Building blocks

Four years after inception, Child Trust Funds have clearly made a positive impact on childrens' savings, but there still seems some work to be done to encourage parents to engage with the scheme

From September 2009, the first generation of children with a child trust fund (CTF) begin to turn seven years old. This is an important milestone that triggers the second round of Government top-ups into CTF accounts, and this provides an excellent opportunity for parents, the Government and CTF providers to take stock of the achievements of the CTF scheme. Since 2005, parents of most children born in the UK after 1 September 2002 have been given £250 (£500 in the case of lower-income families) to open a CTF for their newborn. The Government will then add a second £250 (or £500) to the f...