Care and support

Child trust fund ('baby bonds')

The CTF is a savings plan for all children born after 1st September 2002.

Each child will receive an initial payment of £250 at birth – rising to £500 for children from low-income families (households whose income is at or below £15,575).

The government will top the fund up on the child’s seventh birthday, with a further payment of £250 or £500 for children who are part of a lower income household. Parents, grandparents and friends will be able to pay extra money into the account – up to a maximum of £1200 a year.

The account will be in the child’s name, but cannot be spent until they reach 18, by which time the fund will have grown. There will be no restrictions on how the money is spent.