Steady increase in CTF contributions
Monthly parental contributions to Child Trust Funds (CTFs) have increased with an additional 30,000 accounts now receiving direct debit subscriptions – according to the latest quarterly survey conducted by TISA (Tax Incentivised Savings Association).
Despite economic pressure on family finances over 640,000 CTFs now receive regular monthly contributions worth in excess of £14.4m; an increase of more than £800k on the previous quarter.
Covering the period up to 15 September 2009 the survey shows that 30.8% (30.2% in the previous quarter) of all CTFs in the survey have received some form of additional subscription – either a monthly direct debit or a one off lump sum.
- Representing 65% of all CTFs, TISA’s survey provides an insight into just under 3m accounts.
- The number of CTFs with active monthly direct debit subscriptions rose to 641,717 (21.5% of all accounts).
- The average amount of monthly subscription rose to £22.59 from £22.38 in the previous quarter.
- 9.3% 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 256,586 (229,485 – June 2009, 203,174 – March 2009).
These figures suggest that around 1.4m parents and relations are contributing to their children’s accounts with something in excess of £22m being added on a regular basis every month.
TISA Director General Tony Vine-Lott says:
“Despite the challenging economic situation it is encouraging that contributions to CTFs are continuing to rise. Understandably, the increases are currently at a modest level, but it does confirm that parents see the value in providing their children with a financial nest egg when they reach 18.
“The introduction of the second CTF payment in September for those reaching their 7th birthday will also stimulate further interest. I hope that families will use this as an opportunity to reinforce the message about money awareness as part of the broader efforts to improve the financial literacy of young people.”
Ends
For further information, please contact:
Tony Vine-Lott, Director General, TISA – 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 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
No. of CTF accounts in survey
15 Sep 2009: 2,985,318
15 Jun 2009: 2,845,170
15 Mar 2009: 2,701,043
15 Dec 2008: 2,558,852
Lump sum:
No. receiving lump sum subscription
15 Sep 2009: 256,586
15 Jun 2009: 229,485
15 Mar 2009: 203,174
15 Dec 2008: 191,983
Total lump sum subscriptions to date
15 Sep 2009: £129,934,415
15 Jun 2009: £120,371,877
15 Mar 2009: £104,934,938
15 Dec 2008: £92,703,568
Average amount of lump sum payment
15 Sep 2009: £506
15 Jun 2009: £525
15 Mar 2009: £516
15 Dec 2008: £483
Direct Debit:
No. with active monthly direct debit subscriptions
15 Sep 2009: 641,717
15 Jun 2009: 611,655
15 Mar 2009: 588,558
15 Dec 2008: 571,299
Monthly rate of DD subscriptions
15 Sep 2009: £14,493,990
15 Jun 2009: £13,686,258
15 Mar 2009: £13,086,506
15 Dec 2008: £12,626,076
Average monthly DD amount
15 Sep 2009: £22.59
15 Jun 2009: £22.38
15 Mar 2009: £22.23
15 Dec 2008: £22.10