The Child Trust Fund

The Child Trust Fund (CTF) is a long-term savings and investment account for children. The Government makes payments to children through this account to help build up a useful stock of assets for when they reach the age of 18. The CTF accounts will help to strengthen the savings habit of future generations, spread the benefits of assets ownership to all, educate people in the need for savings and give young people a basic understanding of financial products.

The CTF is part of the Government's strategy for saving and asset ownership.

CTF accounts have been available since 6 April 2005 for eligible children born on or after 1 September 2002.

The Chancellor announced in his Budget on 22 March 2006 that all children eligible for the Child Trust Fund will receive a further Child Trust Fund payment at age 7 of £250 with children from lower-income families receiving £500. Eligibility will be similar to that for the initial payments and will be based on the child being born on or after 1 September 2002, living in the UK and being the subject of a Child Benefit award on the child's seventh birthday. Children in families who qualify for full Child Tax Credit with an income below the threshold on the child's seventh birthday will qualify for the higher payment at age seven.