Child Trust Fund

The Child Trust Fund is a savings and investment account set up by the Government for all children living in the UK born on or after 1st September 2002. The Government will start the Child Trust Fund account with a sum of £250 and then when the child is seven, the Government will make a further contribution. It is a long-term savings account and the child will not be able to access the money until they reach the age of 18. Neither parent nor child will pay tax on income and gains in the account. Gordon Brown announced in his 2006 Budget a £250 payment from the Government for each child on their seventh birthday...

A Child Trust Fund Account is opened with a voucher. There is one voucher for every child and they are sent out to the child's parents or carers through the post. Each Child Trust Fund Voucher represents the initial £250 contribution from the Government and is the one and only way to open a Child Trust Fund account for a child. Before parents or carers can receive the voucher, they must first claim and be awarded Child Benefit. Child Benefit is paid regardless of family income and it goes to parents or carers of all children living in the UK, until the child reaches the age of 16 and from 16 onwards when in full time education.

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