£100 child trust fund top-up for children in care

22 June 2007
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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