While there can be no blaming the authorities who first introduced the Child Trust Fund idea to the UK population, recent figures show a large number of parents have yet to even deposit their Child Trust Fund (CTF) vouchers.  A report released towards the end of last week showed that up to 33% of all CTF vouchers had not been cashed, and as a consequence a number of children look set to miss out on a potential windfall in later life.

What are CTF vouchers?

CTF vouchers were introduced by the Labour government in 2002, and were created to allow bank accounts to be opened in the name a minor.  Those parents who have children born after 1st September 2002 are entitled to a CTF voucher with a value of some £250, which can only be despoited into the childs account.

The scheme is based upon the fact it should also encourage those in a  position, to top-up these accounts (tax free) to ensure that their children, grandchildren, etc have a useful lump sum when they reach the age of 18.  On their 18th birthday the “child” is entitled to take control of the account and spend as they so please.

There have been calls for this type of scheme for many years, and it is a little difficult to understand exactly why so many parents have not taken advantage of the initial CTF vouchers.  The authorities have promised to highlight the plight again, with the aim of bringing the situation back into the limelight and promoting use of the vouchers.

Have you used your CTF vouchers?