Child Trust Fund figures provide cause for hope

HM Revenue and Customs (HMRC) has released its latest quarterly figures on Child Trust Funds (CTF) and according to the home of the child trust fund, The Children's Mutual they spell good news.

David White, Chief Executive of The Children's Mutual said: "The latest figures from the HMRC make encouraging reading. Considering the economic backdrop, it is very reassuring that the number of CTF vouchers being placed by parents has remained strong with nearly three quarters of vouchers (72 per cent) placed within a year of issue.

"Despite the growing pressures on family budgets, we are witnessing an ongoing commitment by parents, grandparents and family members to ensure that CTFs are being topped up by either ad hoc payments or by a monthly direct debit. Currently the average direct debit being paid into a CTF with us stands at £24 per month which maintained over the lifetime of the CTF could produce a fund value in the region of £9,750.

"According to figures from The Children's Mutual, prior to the introduction of the CTF less than one in five families was saving regularly for their children. This has now leapt dramatically to almost six in 10, with regular payments being seen from every socio-economic background.

Mr White said; "Today's HMRC figures and our own show that the CTF is working. It is being used by families to help to provide a future financial springboard for their children, so that when they enter adulthood they may be able to avoid some of the economic nightmares being faced by today's 18-year-olds."