Child Trust Fund contributions continue to increase
Child Trust Fund contributions continue to increase Regular monthly contributions into Child Trust Funds continue to increase and now amount to £12.6 million per month, according to the latest quarterly survey conducted by TISA – the Tax Incentivised Savings Association.
Covering the fourth quarter of 2008 for the period up to 15 December, the survey provides an insight into more than 2.6 million CTF accounts representing 65% of the market.
Monthly direct debit CTF contributions rose to an average of £22.10 from £21.99 in the previous quarter, the 10th successive increase since the survey began in August 2006. The number of accounts with an active monthly direct debit subscription grew by 22,549.
There was also an upsurge in the number of accounts receiving lump sum contributions which rose to 195,356, up from the previous quarter’s figure of 166,021. The average lump sum subscription however reduced to £471 from £508.
Tony Vine-Lott, TISA Director General said:
“CTFs continue to buck the savings trend as parents invest in their children’s future and I am particularly encouraged by the increase in the amount of regular savings. Even at the current average direct debit subscription level the CTF should amass in excess of £5,000 after 18 years. This will be a tremendous boost to a young person beginning their adult life.
“But there is still plenty of scope to increase contributions up to the maximum and it is worth remembering that it is not just parents who can contribute to a CTF. Family and friends can also make regular contributions or a lump sum payment and many will have done so at Christmas, these will be reflected in our next quarterly survey.”
The level of engagement between parents and the CTF is also on the rise with HMRC statistics indicating that 72.7% of vouchers issued were used to open an account (the fourth successive quarterly rise).
Ends
Notes to editors: TISA is the leading trade body for CTFs and tax incentivised savings. It has worked with the Government to develop and implement the CTF. This quarterly CTF survey is compiled from data supplied by CTF providers representing 65% of all CTF accounts. TISA wants to remind parents and their families that every eligible child could benefit from tax free saving of £1200 per year to build into a nest egg for them when they reach 18 years of age.
If parents have questions or concerns, they should call or contact their CTF provider or contact the Government’s information helpline on 0845 302 1470 or by visiting http://www.childtrustfund.gov.uk/.
For further information, please contact:
Steve Radford, Cauldron Consulting – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108 Email: tony.vine-lott@tisa.uk.com
Or visit:
TISA’s website: www.tisa.uk.com
Email enquiries to: enquiries@tisa.uk.com