Children in care will get an extra boost to help them begin saving early in life, the Department for Education and Skills has announced.
'Cared-for' children who spend some part of their lives in care will be given an extra £100 by government, ploughed into the Child Trust Fund (CTF) savings vehicles.
The Children's Mutual, a specialist provider of savings for children, welcomed the announcement, noting that a child who received the £100 top-up each year in addition to government top-ups of £500 at birth and at age seven could receive £5,260 when they reach 18.
"For those children who spend at least part of their lives growing up in care, this financial boost could make a real difference when they reach adulthood," emphasised David White, chief executive of The Children's Mutual.
CTFs, launched in 2002, invite parents, grandparents, and interested friends to top-up Treasury contributions to allow children to accumulate a savings stash which matures when they reach 18.
This week, moneyexpert.com claimed that Child Trust Funds were entering a 'savings price war' as providers started increasing the average interest rate on the funds.
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