Ed Balls launches Child Trust Fund Week

The Economic Secretary, Ed Balls, today launches Child Trust Fund (CTF) week in a visit with Pensions Minister James Purnell to the Ann Taylor Children's Centre in Hackney.

The week, which runs from 15 January to 20 January, is part of a national campaign to increase families' engagement with the Child Trust Fund by encouraging eligible parents to use their voucher, make an informed decision about their provider and account type and consider making additional contributions for their child.

The week follows the publication of the latest national and regional statistics on the CTF. These statistics confirm a good overall performance with almost 2.5 million Child Trust Funds set up, three quarters opened by parents themselves. The data also highlights the variation in performance between different areas of the country with many of the areas of lower engagement characterised by lower incomes and financial exclusion, particularly urban areas.

To promote engagement up and down the country Ed Balls has written to all MPs to tell them about the statistics for their own constituencies, and has asked them to work in their local areas to encourage parents to engage with the CTF. To support them, the Government is distributing Child Trust Fund materials, including balloons, posters and leaflets. These will be used in series of local events in nurseries and libraries by citizen's advice and providers up and down the country, on the basis that small, well-targeted events can together make a big difference.

Launching the week, Economic Secretary to the Treasury, Ed Balls said: "The Child Trust Fund's success has exceeded our expectations. At a national level, three in four parents are actively opening their child's account. Performance between different areas of the country varies but the design of the Child Trust Fund means no child will miss out. In order to promote engagement across the country this week will include local and regional events led by MPs, Citizens advice, Child Trust Fund providers and distributors" .

CTF is a straightforward way to start saving for a child's future - and the sooner parents open an account, the sooner their child's money can start to grow. The CTF provides young people with a welcome nest egg, will act as an excellent tool for teaching financial education in schools, stimulating children's interest in saving for the future.

Supporting CTF Week, former Emmerdale star and mother of two Sheree Murphy, said: "My children's future is always top of my mind, and the Child Trust Fund is a fantastic way to start saving for them. Harry (Kewell) and I opened a Child Trust Fund account for our daughter Ruby and we encourage relatives and friends to contribute to it for her birthday and at Christmas. Watching it grow together will be a great way for Ruby to learn about the importance of saving."

Talking to families yet to use their CTF voucher, Independent financial expert Alvin Hall said: "It's time for you to do something now. Every day the Child Trust Fund voucher stays lying in a drawer, your child is missing out on the growth this money could be earning for his or her future. And rest assured, if you change your mind in the future about the type of account you want for your child, you can move the money to a different one. What your child decides to do with the money from their Child Trust Fund account is up to them when they reach 18 years old. They might want to pay for a computer, driving lessons or starting a business. Whatever they do - whether they use the money at 18 or choose to re-invest it, they'll have you and everyone else who contributed to the account to thank!"