Child Trust Funds essential to give young adults head start

HM Revenue & Customs (HMRC) quarterly statistics released today reveal a rise in the number of Child Trust Fund (CTF) accounts opened by parents within a year of receiving a CTF 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 a CTF within the first year of their child's birth.  This shows that the initial Government CTF voucher is an effective way to encourage parents to take the first steps to save for their children's future.  The success of the CTF 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 CTF and reverse the benefits it has begun to deliver."

"The CTF 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 CTFs by parents, family and friends every month, which demonstrates a burgeoning savings culture is being created."

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