Gordon Brown last month said, in his pre-budget speech, that child trust funds will be topped up by an extra £250 when the child reaches 7 years old. An extra £500 will be given to the children from poorer families. The Child Trust Funds were established in the 2003 budget, where all children born after 1 September 2002 are eligible.
An initial £250 or £500 is given when the child is born, which is given by means of a voucher, which can be credited to the child trust fund normally, via a bank, building society or investment company. Parents are then able to top up the account by a maximum of £1,200 per year.
Our view
Great news for the young. Parents should start to get their CTF vouchers very shortly.