MP Welcomes Child Trust Fund Payments for 7 Year Olds
29th September 2009
Dr Hywel Francis MP has welcomed the first payments made this month to 7 year olds through the Child Trust Fund. All 7 year olds will receive a payment of £250 into their accounts, with a further £250 payment being made into the accounts of children in lower-income families and children in care.
The Government also announced at Budget 2009 that it will contribute an additional £100 per year to the CTF accounts of disabled children, with severely disabled children receiving £200 per year. These payments will start in 2010. The Government also provides an extra £100 per year to every child who spends the year in care.
Dr Francis said,
“Over 700,000 7-year-olds per year will benefit from the age 7 payments starting this month. The Child Trust Fund helps to encourage children and their families to save for the future, and ensures that every child on reaching 18 has a significant asset on entering adult life.”
The Child Trust Fund benefits over 4.4 million children, and the total value of savings held in Child Trust Fund accounts is currently around £2bn. Around ¾ of parents actively open their child’s CTF account after their child is born, but no child misses out – if parents haven’t used their voucher within 12 months, the Government opens a stakeholder account on the child’s behalf.
