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This information applies to England, Wales, Scotland and Northern Ireland
The Child Trust Fund is a savings and investment account for children. The government makes payments to a child through this account and your family and friends can also contribute. When your child is 18, they will have access to the account and will be able to spend the money however they like.
If your child ws born on or after 1st September 2002, and you are currently getting Child Benefit, they are eligible for a Child Trust Fund account.
An initial payment of £250 will be paid when an account is set up, followed by another payment of £250 on your child's seventh birthday. If you are getting Child Tax Credit and your income is less than £15,575, your child will get a payment of £500 when they are born and another £500 when they turn seven. You and your family and friends can also contribute up to £1,200 each year to the fund.
You do not have to claim for the scheme as vouchers are issued automatically to people who are getting Child Benefit for a child who qualifies. However, you do have to open a Child Trust Fund account for your child in order to receive payment.
If you have not opened an account one year after receiving the voucher, the government will do this for you, but your child will lose interest on the money.
For more information on Child Trust Funds and Child Benefit, see Benefits for families and children.
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