Care and support

Child trust fund (CTF)

The Child Trust Fund is a government plan to try to encourage saving for children. The government will provide £250 to each person who claims child benefit for all children who were born on or after 1st September 2002. Payments will be made automatically in the form of a voucher from HMRC. The voucher can then be used to open a Child Trust Fund Savings Account from one of a number of providers. Lower income families will receive a £500 voucher. Additional amounts will be paid by the government when the child reaches age 7. Family and friends may make additional contributions to the funds up to a maximum of £1,200 each year. The funds in the account are tax free, and will belong to the child, who cannot access them until they have reached the age of 18 (unless terminally ill).

As child benefit is not usually paid when a child is looked after by the local authority, HMRC will open up accounts for all eligible ‘looked after’ children. These children will have £500 credited to their account.

If you are getting child benefit for a child who is placed for adoption (but not yet adopted), you may receive the CTF voucher. You can’t actually use it until the child is adopted. In the meantime, HMRC may select a suitable CTF account on the child’s behalf.

If you adopt or have adopted a child who was born on or after 1st September 2002, it is important that the CTF account is traced. You can then take over management of the account, as you will have parental responsibility. More information is available from the Child Trust Fund Helpline on 0845 3021470.or www.childtrustfund.gov.uk