Secretary Of State To Find Out How Superstore Markets Child Trust Funds

Posted in: Products Last updated: 01 Apr 2005

Secretary of State for Work & Pensions Alan Johnson MP will visit supermarket chain ASDA to see how the public is reacting to its new child savings initiative.

The Child Trust Fund (CTF), supplied in partnership with financial organisation Engage Mutual Assurance, has been flying off the shelves after its recent launch in the store, and the added incentive of up to £25 in George vouchers when opening a fund has proved a hit with customers.

During his visit to the Hessle Road store, in Hull tomorrow (Friday), the minister will talk to ASDA colleagues responsible for introducing the CTF product as well as one who qualifies. He will also have a chance to discuss finance with shoppers.

Andrew Haigh, Chief Executive at engage Mutual Assurance, will meet the minister during the event.

He said: “We worked very closely with the Government on the development of its Child Trust Fund initiative, and I am looking forward to meeting the minister and hearing his views.

“Our relationship with ASDA is going extremely well and our Child Trust Fund is proving very popular with the public.”

What is a Child Trust Fund?

A Child Trust Fund is a special savings account available to all children born on or after September 1, 2002. The Government is in the process of issuing each of these children a voucher for £250 or more (lower income families will get £500) to invest in a CTF – which will only be available through Inland Revenue approved providers.

Parents will be able to top the fund up by up to £1,200 per year and the growth on the money will be tax-free. Vouchers began going out to families from January 2005, with CTFs becoming available to invest in from April.

Gev Lynott, ASDA’s director of financial services, said: “The ASDA Child Trust Fund provides an easy and accessible way for parents to start saving on a regular basis for their child’s future. Even though Child Trust Funds don’t officially go live until next Wednesday (April 6), we’re encouraging people to get cracking now with their saving so their child’s fund benefits from the investment from the word go.”