Child Trust Fund

From January 2005, people claiming child benefit for a child born on or after 1 September 2002 will receive information packs from the Inland Revenue about the Child Trust Fund and some vouchers to enable them to open an account. These will be sent automatically; there is no need to make a claim.

For children born between 1 September 2002 and 5 April 2005, the vouchers are worth between £256 and £277, depending on when the child was born.

For children born after 5 April 2005, vouchers will be worth £250. Children in low-income families will receive an additional £250 paid directly into their Child Trust Fund accounts. Another payment (of £250) will be made when the child is seven. Families and friends can also pay up to £1,200 a year into each child's account.

People can open accounts as soon as they receive the vouchers, although the Revenue will not make any payments until April 2005. Families and friends cannot make payments until then either.

The information pack contains a list of institutions providing accounts. This information is also available on the Child Trust Fund website at www.childtrustfund.gov.uk. The Child Trust Fund helpline number is 0845 302 1470.

All the money in a Child Trust Fund account belongs to the child and cannot be spent until the child is 18. It will not be taken into account for benefits or tax credit claims until then.

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