Newham parents are missing out on making a vital investment for their children’s future.  10,000 Child Trust Fund vouchers worth over £500 have been issued in Newham since the Fund was introduced in 2005 and only 70% of these have been claimed by Newham parents.  The vouchers are used to open and invest in one of the government’s saving accounts to give each child a valuable lump sum payment on their 18th birthday.

The Child Trust Fund provides every child born on or after 1 September 2002 with a payment of £250 to open a savings account at birth and a further £250 on their seventh birthday.  Families on low incomes will receive an extra £250.  On top of this, disabled and severely disabled children will receive further payments of £100 and £200. 

Although the Government will automatically open accounts for all children even if the vouchers go unused, choosing and investing in a particular account can teach children essential financial skills and could even give them a bigger payout when they reach 18.

Lyn Brown, MP for West Ham, said:

“I urge all parents to take advantage of the payments that are due to their children from the Child Trust Fund.  It costs nothing to claim the vouchers and it is easy to choose how you want to invest the money for your child.  By investing your payments now, your child will receive a valuable lump sum at 18 which could go a long way to paying for things like driving lessons or university.

A Tory government would move to scrap the Child Trust Fund, leaving around 4.6million children with no investment for their future.

This is yet another example of Labour’s commitment to giving all children the best possible start in life.

If parents want to know more about how to open up a Child Trust Fund account for their child, please contact me.