Confidence in CTFs spurs extra money
Confidence in CTFs spurs extra money
The latest TISAquarterly survey of Child Trust Funds (CTF) shows that parents andrelatives continue to make extra contributions into CTFs, in increasingamounts. The survey, which covers the period to 15 December, givesinsight into over 2 million accounts opened by participating providers.
Providers reported over £10 mn in live direct debits, giving the UK’schildren nearly £121 mn in extra monies in their account each year.Parents, grandparents and relatives also continue to top up CTFs vialump sum contributions. Providers reported receiving over £54 mn insingle payment contributions.
Importantly, the average contributions for lump sum and monthly directdebits continue to increase each quarter. Monthly direct debits are up1% on the Autumn survey, while average lump sum contributions have seena marked increase of 3.5%.
The long-term perspective is also very encouraging. The monthly directdebit figures have risen from £20 in August 2006 (when TISA did itsfirst survey) to £21.43 now. While £1.43 might seem small—it actuallymakes a huge difference across over 470,000 live direct debits madeeach of the 12 months.
The average lump sum contribution has risen dramatically from £317 inAugust 2006 to £450 now. That increase of over 40% shows that as andwhen parents are able to contribute to their children’s savings, theysee the CTF as the natural destination for those funds.
TISA Director General Tony Vine-Lott said,
‘I am extremely pleased with the progress of Child Trust Fund. Thisadditional money will make a big difference in the outcomes ofchildren’s CTFs. The fact that we are seeing increases across theboard—percentage setting up direct debits, percentage making a lump sumcontribution, and amounts contributed— is a testament to the success ofthe scheme and the extent to which parents are buying into it. We lookforward to working with the Government, the industry and mainstreammedia to ensure that awareness of CTF continues to rise.’
For more information, please contact:
Jacob Coy, Cicero Consulting
+44 7900 392 531 or jacob.coy@cicero-europe.com
Tony Vine-Lott, Director General of TISA
+44 1372 374 728 or 0790 006 108
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.
TISA wants to remind parents and their families that every eligiblechild could benefit from tax free saving of up to £1200 per year tobuild into a nest egg for them when they reach 18. If parents havequestions or concerns, they should call or contact their CTF provideror contact the Government’s information helpline on 0845 302 1470 or byvisiting www.childtrustfund.gov.uk.