Child Trust Fund Budget News
A real move to help Child Trust Fund (CTF) customers was announced by Chancellor Alistair Darling today. From April 2009, parents will no longer have to physically send their child’s CTF voucher to a provider in order to open a new account. The UK’s only specialist in long-term savings for children, The Children’s Mutual, said this will mean more accounts will be opened more quickly and predicts the new measure could increase the number of CTF accounts opened by parents well above the current 75 per cent level.
David White, Chief Executive of The Children’s Mutual, said: “CTF vouchers are a great reminder to prompt parents to open their child’s CTF account but can add to their day-to-day administration burden. Last year, the number of CTFs opened with us online shot up by 27 per cent but families still have to remember to post the voucher so we can open the account. With this admin barrier removed, accounts will be opened quicker and importantly the children’s accounts will start growing earlier.
“We’re delighted the Government has responded to our request to help parents start saving for their children more easily.”