CTFs increasingly benefit from lump sum contributions
Lump sum subscriptions to Child Trust Funds (CTFs) have risen to a record average level of £525, according to the latest quarterly survey conducted by TISA (Tax Incentivised Saving Association).
Representing 64% of all CTF providers TISA’s survey covers the period up to 15 June 2009 and provides an insight into 2.85 million accounts. Average lump sum subscriptions increased for the third quarter in succession to reach £525 (£516 and £483 in the previous two quarters). 8.7% of all CTFs have now received a lump sum contribution, up from 5.5%in August 2006 when the survey commenced. The total number of CTFs that have received a one-off contribution rose to 229,485 (203,174 in the previous quarter).
TISA Chairman John Brasington says:
“It seems that the message is getting through that family and friends can contribute to a CTF as well as the parents. Although it’s more favourable for people to commit to regular direct debit savings, given the financial uncertainties facing many families we need to continue to encourage one-off contributions at a birthday and Christmas to ensure that CTFs are as well funded as possible.”
Government will be introducing the second CTF payment later this year when holders who reach their 7th birthday will receive an additional contribution of £250. In addition up to £1200 can be saved into a CTF each year to provide a financial springboard when the holder turns 18.
Ends
For further information, please contact:
John Brasington, Chairman, TISA – Mobile: 07971 280315
Steve Radford, Cauldron Consulting – 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 can 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 June 2009: 2,845,170
15 March 2009: 2,701,043
15 December 2008: 2,558,852
Lump Sum:
Number receiving lump sum subsriptions to date
15 June 2009: 229,845
15 March 2009: 203,174
15 December 2008: 191,983
Average amount of lump sum payment
15 June 2009: £525
15 March 2009: £516
15 December 2008: £483
Direct Debit:
Number with active monthly direct debit subscriptions
15 June 2009: 611,655
15 March 2009: 588,558
15 December 2008: 571,299
Monthly rate of DD subscriptions
15 June 2009: £13,686,258
15 March 2009: £13,086,506
15 December 2008: £12,626,076
Average monthly DD amount
15 June 2009: £22.38
15 March 2009: £22.23
15 December 2008: £22.10