§ Dr. KumarTo ask the Chancellor of the Exchequer if he will make a statement on the results of the Child Trust Fund; and how many people in each area have taken advantage of the scheme. [137646]
§ Mr. BoatengThe Child Trust Fund (CTF) is intended to encourage parents and children to develop the savings habit. It will ensure that every child, whatever their family background, will have access at the age of 18 when they begin their adult life, to a stock of assets which they can invest in their future.
It will also help children and their parents to understand the benefits of saving and investment and how to engage with financial institutions.
Detailed proposals covering the CTF were issued on 28 October. Accounts will first become available in April 2005. It will not be necessary to make a specific claim for the CTF—access will be through the child benefit system and parents will be sent a voucher with which to open an account for their child. Where an account has not been opened within 12 months of the issue of the voucher the Inland Revenue will open an account for the child to ensure that they do not miss out.