Millions going unclaimed in child trust fund vouchers

18 August 2008

People are passing up the chance of thousands of pounds’ worth of tax-free savings because child trust fund vouchers are going unused.

According to Nationwide, this year only 57 per cent of child trust fund vouchers have so far been paid into savings accounts. The remainder, which represents some £248 million, are sitting unused.

The Nationwide also calculated that 25 per cent of vouchers expire uncashed after 12 months.

Matthew Carter, savings director at Nationwide, commented: “It’s disappointing that so many vouchers have either expired or are not being used to open a CTF. To get the most out of it, parents should invest their child’s voucher early to help it achieve its full potential. By topping up their child trust fund on a regular basis, parents can help to give their children a head-start in life.”

Under the child trust fund scheme, children born after 1 September 2002 receive a £250 voucher from the government. Parents can use this to set up a CTF account on behalf of their child. Another voucher worth £250 is payable when the child reaches seven. Parents and family are allowed to pay in up to £1,200 to the account annually.