Poorer families missing out on child trust funds, say Tories

Just two thirds (69 per cent) of parents in the 10 most deprived communities in England claim Child Trust Funds (CTF), compared to more than four fifths (82 per cent) of parents in the 10 richest areas, according to a Tory analysis of Government figures.

The analysis looked at trust funds opened by parents for children born on or before April 5 2008 and the proportion of children in deprived households in each constituency in 2007.

CTFs are savings and investment accounts provided by the Government to children born on or after September 1 2002.

A voucher for 250 is sent to all eligible children when their parents register for child benefit. The parent then uses this to open a trust fund account. If parents do not do this, the Government can open an account. But the Tories argued that many of these parents are unaware that the account exists.

Their analysis also shows that children living in poorer areas are not enjoying the same level of savings as those living in rich areas.

For example, the average contribution to an account in London between April 2008 and April 2009 was 368, whereas in the North West it was 225.

Shadow Families Minister David Willetts said: "The aim of encouraging parents to save for their children's future is a laudable one. But it is deeply worrying to learn that those who could benefit most from Child Trust Funds are among the least likely to use them."

The Treasury insisted that

children whose parents fail to open an account will not miss out.

A spokesman said: "CTFs ensure that every single child in

the country has a financial

asset when they reach 18.

No child will miss out on a CTF

as HMRC will automatically

open an account for children if parents haven't done so after a year."

He added: "The Government continues to work closely with Sure Start centres to ensure all parents across the country proactively open an account for their child."