Local MP John McDonnell encourages local people to take advantage of the Child Trust Fund

Local MP John McDonnell today reminded local people that their children may be eligible for a Child Trust Fund.

Child Trust Fund (CTF) is a savings and investment account for children. Children born on or after 1st September 2002 will receive a £250 voucher to start their account. The account belongs to the child and can’t be touched until they turn 18, so that children have some money behind them to start their adult life.

Children eligible for the Child Trust Fund will receive a further Child Trust Fund payment of £250 at age 7, 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.

Local MP John McDonnell is raising awareness of this Government scheme as he is concerned that not all families eligible for the award are receiving it, especially lower-income families who are not financially confident.

In respect of children born up to 5th April 2006, 4,983 vouchers were issued in Hayes and Harlington. Of these, only 74.2% were used by parents to open an account. The national average of voucher use for constituencies across the UK was 75.7%. Children whose vouchers were not redeemed had their £250 automatically placed in a Revenue Allocated Account.

Local MP John McDonnell is keen to increase the number of local people who redeem their vouchers and apply for Child Trust Funds, and suggests that those who can should make additional contributions in order to make the most of the opportunities the Child Trust Fund represents.

Local MP John McDonnell said “This scheme should give every child extra financial help when they enter adulthood. I call upon all parents to make sure they take full advantage of the Child Trust Fund in order to give their child the best start in life. Starting a Child Trust Fund is simple and if you do have any questions, you can call the Child Trust Fund Helpline”.

For more information about the scheme please log on to the Child Trust Fund website at http://www.childtrustfund.gov.uk or call the Child Trust Fund Helpline on 0845 302 1470.

submitted by John on 15 Nov 2007 at 15:34