Child Trust Funds are failing to benefit poorer families the Conservatives have claimed.

According to the Press Association, official statistics suggest that 82 per cent of parents in the 10 richest areas of England have invested in a Child Trust Fund (CTF), compared to 69 per cent of parents in the 10 most deprived communities of the country.

Launched in 2002 by the Government, Child Trust Funds are eligible to children born on or after September 1 2002.

Eligible children are given a voucher for £250 once their parents have registered for child benefit and this contribution by the Government can then be used to open a trust fund account, but if parents fail to do this the Government can also open an account.

However, the Conservatives have argued that many of these parents are unaware that the Child Trust Fund exists and could therefore be missing out.

Analysis of the research by the Tories has revealed that the average contribution to an account in London between April 2008 and April 2009 was £368, compared to £225 in the North West.quoted David Willets, shadow families minister as saying: The Press Association: “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.”

© Fair Investment Company Ltd