Child trust fund vouchers not invested

05 October 2005
The government is launching a new Child Trust Fund guide in association with TV money man Alvin Hall, after it was discovered that thousands of vouchers worth £250 million are still to be invested.

Under Gordon Brown's Child Trust Fund scheme, the government sends every child a £250 voucher to invest or put in a bank account, with parents on low incomes receiving £500.

However, many parents have failed to invest the government 'gift'.

Alvin Hall said: "It's time for you to do something now. Every day the Child Trust Fund voucher stays lying in a drawer, your child is missing out on the growth this money could be earning for his or her future.

"And rest assured, if you change your mind in the future about the type of account you want for your child, you can move the money to a different one."

A million vouchers have currently been invested, but hundreds of thousands are yet to make it to the bank.

After the initial investment, parents, friends and relatives can put an extra £1,200 a year into the fund tax-free.

When children reach the age of 18 they can have access to the money.

Parents can invest in either a stakeholder account, a shared account and a savings accounts on behalf of their child.

The government has warned that if parents fail to invest the money, the government will do it for them, and they will have no say in how it is invested for their child.

At present almost a million Child Trust Fund accounts have been opened.

To read more about Child Savings, click here.

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