Child Trust Fund accounts near the 2.5 million mark

Almost 2.5 million Child Trust Fund (CTF) accounts have now been opened, the Economic Secretary, Ed Balls, announced today, with three-quarters of all parents opening their children's accounts themselves.

The new figures come on the eve of Child Trust Fund Week, which takes place between 15th-20th January, and which will encourage all parents and other family members to help top up the funds in their children's accounts and help raise awareness of the CTF amongst hard-to-reach groups.

Ed Balls said: "It is really encouraging that three in four parents are now opening accounts for their children, but we want to do more. That is why I will be launching the first Child Trust Fund Week this month.

"We want parents, grandparents and whole families to use the Child Trust Fund and we are asking schools to start using the accounts to teach kids about money and savings. And for children who still have Christmas money unspent, I'd encourage parents to put that money in their Child Trust Fund account.

"To kick off the week, I will be writing to all MPs with details of account opening rates for their constituencies to enable them to consider ways of promoting awareness of the Child Trust Fund in their local areas."

The Child Trust Fund was introduced for all children born in the UK on or after 1 September 2002, with a £250 voucher from the Government to start off each child's account, and a further £250 paid into the account at age 7. Children from lower-income households receive an extra £250 top-up at birth and at age 7.

The latest figures show that, between the introduction of the scheme in April 2005 and the end of December 2006, a total of 2.48 million accounts have been opened: 1.95 million by the parents themselves and the remainder opened by HM Revenue and Customs on behalf of eligible children.