Were Child Trust Fund Accounts a success?
More than five million child trust fund vouchers have been issued since the scheme was first launched in April 2005. Figures from HM Revenue & Customs show 3.7 million Child Trust Fund accounts had been opened by parents by March 31, 2010. If parents fail to open a CTF on behalf of their child within 12 months of receiving the voucher, a stakeholder version of the account is automatically opened for them. Supporters of the scheme say the funds encouraged parents to save for their children. Asda provides access to a Child Trust Fund Account with The Children’s Mutual. Research by the provider showed fewer than one in five parents saved for their children before Child Trust Funds were launched, but this rose to three in five following the introduction of the scheme. The Children’s Mutual found parents who make regular contributions to the funds pay in an average of £24 a month, which could produce a fund worth around £9,750 when their child turned 18, at an assumed growth rate of 7% a ye