Record numbers claim Child Trust Fund in Streatham but thousands are still left unclaimed
Record numbers of Streatham parents have claimed the government’s Child Trust Fund, a savings and investment account available for all children at birth, receiving £250 free to start their account and a further £250 when their child reaches seven and eleven.
A total of 7,045 children in the Streatham constituency now have Child Trust Fund accounts set up, although a further 2,581 vouchers have been left unclaimed by parents.
For parents who do not claim the £250 and open a Child Trust Fund, an account is set up on behalf of the child so parents can subsequently claim the Child Trust Fund if they have not done so already.
To claim the fund and open an account for their child, parents should log on to http://www.childtrustfund.gov.uk/ for further details and a list of providers for managing the account.
Child Trust Funds were introduced by the government in 2005 and apply to all children born after 1 Sept 2002. They are designed to provide a ‘nest egg’ for young people when they leave education.
Families can add to the fund, and given the growth the investment makes over eighteen years adding as little as £10 per month means the fund will be worth as much as £4,500 on maturity. If the maximum amount is added each month, it could eventually be worth as much as £37,000.
While the funds are initially set up with a total of £250 when a baby is born, they are topped up again by the government at the age of seven. In September of last year, as the first beneficiaries of Child Trust Funds reached seven the government began topping up the accounts, whilst making a further £250 payment being to children of low-income families and in care.
Both the Liberal Democrats and the Conservatives opposed the introduction of Child Trust Funds. Nick Clegg, leader of the Liberal Democrats, has pledged to scrap the funds.
Chuka Umunna, Labour’s Parliamentary candidate for Streatham said: “Child Trust Funds are a great way to save for our children’s future. As well as giving youngsters a ‘nest egg’ for when they reach adulthood, they help teach children about personal finance and the benefits of saving.
“I urge all parents in Streatham who have not yet claimed their £250 and set
up an account to do so.”
