5 min read

Child Trust Funds for all is essential to give young adults a financial head start

Posted in: Products

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 accounts opened by parents within a year of receiving a child trust fund 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 child trust funds within the first year of their child’s birth. This shows that the initial Government child trust fund voucher is an effective way to encourage parents to take the first steps to save for their children’s future. The success of the child trust fund 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 child trust fund and reverse the benefits it has begun to deliver.”

“Over £22m is being added to child trust funds by parents, family and friends every month, which demonstrates a burgeoning savings culture is being created. The child trust fund 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 child trust funds by parents, family and friends every month, which demonstrates a burgeoning savings culture is being created.”

“The child trust fund will make an enormous difference to the social and economic fortunes of a generation, which is why it is vital the Government child trust fund contribution should be maintained for all.”