Jan 9 2007
The success of the child trust fund (CTF) scheme should be measured not by the number of vouchers issued by the government and the percentage converted by parents, but instead by the amount of top-ups made by families, it has been claimed.
F&C reports that the CTF is intended to give children a financial head start, firstly by providing a tax-efficient scheme for building savings, while also giving children and parents a reference point and example of savings and investments.
Jason Hollands, director and head of communications at F&C Investments, said: "Understandably, much attention to date has focused on the number of vouchers being pumped out by the government and the extent to which recipients get around to doing anything with them."
"However, a key part of CTF Week should be to encourage more families to now top-up these plans if they are in a financial position to do so."
Last week, the Treasury announced that CTF Week would take place from January 15th-20th and be focused on encouraging parents and other family members to contribute additional funding to their child's CTF.
