DadTalk

Child Trust Fund Changes

The coalition government has announced it will scrap payments in Child Trust Funds from January, following a big reduction in the amounts from August.

So how will the changes affect you and your family?

The coalition government has announced it will scrap payments in Child Trust Funds from January, following a big reduction in the amounts from August.

So how will the changes affect you and your family?

What happens to my child's existing Child Trust Fund account?
If it has already been opened, it will continue as usual - and the child will not be able to touch the money until the age of 18.

As a new parent, I have received a voucher but not used it. What can I do?
You can still use the voucher up to the expiry date which is shown on it. If you do not, then HM Revenue and Customs, as it does at present, will open an account for your child and then inform you of the details.

I am pregnant, will I still get a voucher when my child is born?
If your child is born before 1 August, then you will get the full amount - £250 for most families and £500 for those with a household income of less than £16,190. If he or she is born between 1 August and 1 January, 2011, then the amount will fall from £250 to £50 or from £500 to £100 respectively. If the child is born after 1 January, then nothing will come from the government.

For full answers to these and other questions, try the BBC website.

Or the Child Trust Fund website.