Disability Alliance Factsheet

Child trust fund (CTF)

This factsheet explains the basic rules for the child trust fund. If, after reading it, you want to find out more or need help with making a claim see the Where can I get more help or information? section below.

What is the child trust fund?

The Child Trust Fund was introduced by the Labour Government 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.

As a cost cutting exercise the new ConLib Government is now cutting the amount of payments made under the scheme.

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?

• If your child is born before 2nd August 2010 he or she will be sent a voucher for £250 to start your child's account. If you are receiving child tax credit (CTC), and your household income is below £16,190 your child will receive an additional £250.
• If your child is born on or after 2nd August 2010 he or she will get £50.
• If your child is 7 before 1st August 2010 he or she will get £250.
• If your child is 7 on or after 1st August 2010 he or she will not receive an Age 7 payment.
• If your child is entitled to disability living allowance he or she will get an extra £100 a year (or £200 if he or she is entitled to the highest rate of disability living allowance care component) during the 2009/2010 and 2010/2011 tax years. After 5 August 2011 these payments will cease.

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 get more help or 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. The regulation amending child trust fund payments is SI 2010/1894 available at www.opsi.gov.uk.

www.disabilityalliance.org - 27 July 2010