Child Trust Fund is 'a huge social experiment'

Wednesday, March 24th 2010

The Child Trust Fund (CTF) is "a huge social experiment", marketing director at The Children's Mutual Tony Anderson has said.

He explained that there will be a whole generation of adolescents who will have a financial asset when they turn 18.

"For some that will be a very significant amount of money, but everyone will have something," Mr Anderson commented.

On April 6th the savings scheme will mark its fifth anniversary and five million children will have a CTF account.

CTF accounts see an average of £24 in direct debits each month, which could lead to a £9,750 lump sum on the child's 18th birthday if this level was maintained.

And the funds have a higher engagement rate than pensions and Isas, with almost three-quarters of parents proactively opening the accounts.

Mr Anderson said that currently all children aged seven-and-a-half or under will have a CTF for relatives to contribute towards.