Disability Alliance Factsheet

Child trust fund (CTF)

What is the child trust fund?

The Child Trust Fund was introduced in April 2005 to:

• help people understand the benefits of saving and investing
• encourage parents and children to develop the saving habit
• give all children a financial asset at the start of adult life; 
• build on financial education to help people make better financial choices throughout their lives.

Who gets it?

Every child born on or after 1 September 2002 is eligible for the CTF provided they:

• have an award of child benefit;
• live in the UK; and
• are not subject to immigration controls.

The children of Crown servants, including the Armed Forces, posted abroad, qualify because they are treated as being in the UK.

How much does your child get?

You will be sent a voucher for £250 to start your child's account. Children in families receiving child tax credit (CTC), with a household income below £16,040 will receive an additional £250.

When your child is aged 7 he or she will get a further payment of £250 or a payment of £500 if you are on CTC and with a household income below £16,040.

These payments can only be invested in child trust fund accounts. No withdrawals will be allowed until your child is 18. At that point only the 18 year old will be entitled to withdraw the money.

Note:It was announced in the April 2009 budget that children with disabilities will get an extra £100 a year. Children with severe disabilities will get an extra £200 each year.

How do I claim the child trust fund?

Your child will receive their voucher shortly after you claim child benefit and it starts being paid.

Other features of the child trust fund

Families and friends are encouraged to contribute to the CTF and can pay up to a maximum of £1200 each year into the account. The fund and any income or gain is tax free. You can choose the type of account you want for your child. Details of different types of account and account providers are available from the child trust fund website.

Where can I find out more information?

You can call the CTF helpline between the hours of 8am and 8pm every day except Christmas day, Boxing day and New Years day. The numbers are:

0845 302 1470 (if calling from within the UK)
00 44 1355 359002 (if calling from abroad)
0845 302 1489 (for Welsh speakers between 8.30am and 5pm Monday to Friday)
0845 366 7870 (textphone)

You can also write to:

Child Trust Fund Office
Waterview Park
Mandarin Way
Washington
NE38 8QG

You can find out more information on the child trust fund website at www.childtrustfund.gov.uk. There is also information on the HM Revenue and Customs website at www.hmrc.gov.uk/ctf/.

Guidance for local authorities looking after children is also on the HM Revenue and Customs website at www.hmrc.gov.uk/ctf/la-info.htm.

www.disabilityalliance.org - 2 September 2009