Child Trust Fund contributions set record levels
Child Trust Fund contributions are at their highest level ever with regular monthly subscriptions at £14.8m and lump sum payments to date in excess of £105m according to the latest quarterly survey conducted by TISA – Tax Incentivised Savings Association.
TISA’s survey covers the first quarter of the year (16 December 2008 to 15 March 2009) and provides an insight into 2.7 million CTF accounts representing approximately 64% of the market.
The survey found that the number of CTFs receiving active monthly direct debit subscriptions rose to 588,558 (up from 571,401 in the previous quarter). Average monthly subscriptions also grew to £25.18 – an increase of £3.08 on the previous quarter and £5.34 on August 2006 when the survey commenced. This resulted in an increase of £2.195m in the total value of regular monthly subscriptions to these accounts to £14,820,231.
Other irregular lump sum contributions have also grown, with an increase during the quarter in excess of £13m bringing the total to date to £105,401,198, while the number of CTFs receiving such payments increased from 195,356 to 203,465. The average contribution to date grew to £518, up from £471 in the previous quarter and £317 in August 2006.
TISA Director General Tony Vine-Lott says:
“Our survey confirms that the CTF success story is continuing into 2009. However, to set record levels for contributions in all of our key statistics given the current economic climate is unexpected. It is a testament to parents’ desire to give their children the best possible financial start when they reach age 18.”
The new tax year has also seen the introduction of ‘voucherless CTF opening’ which will allow parents to complete the application process completely online. Until now, parents could fill in the application online but the account could not be opened until the provider received the voucher in the post.
“For whatever reason, parents often failed to submit the voucher to complete the online application” explains Tony Vine-Lott, “the new regulations allow parents to open the account online by using their child’s unique CTF number. This is a good move and will also encourage parents to use the internet to manage CTFs.”
Government will also commence the second payment to CTF holders on their 7th birthday this year.
Ends
For further information, please contact:
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108 Email: tony.vine-lott@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786. Email: steve.radford@cauldron-consulting.com
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 64% 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/.
TISA CTF Statistics Survey Summary of Key Data
Number of CTF accounts in survey:
15 March 2009: 2,701,043
15 December 2008: 2,598,364
Number with active monthly direct debit subscriptions:
15 March 2009: 588,558
15 December 2008: 571,401
Monthly rate of DD subscriptions:
15 March 2009: £14,820,231
15 December 2008: £12,625,507
Average monthly DD amount:
15 March 2009: £25.18
15 December 2008: £22.10
Number receiving lump sum subscription:
15 March 2009: 203,465
15 December 2008: 195,356
Total lump sum subscriptions to date:
15 March 2009: £105,401,198
15 December 2008: £92,107,449
Average amount of lump sum payment:
15 March 2009: £518
15 December 2008: £471