The Child Trust Fund
The Child Trust Fund (CTF) is a long-term savings and investment account for children. It ensures that children have savings at the age of 18 and helps them and their parents get into the habit of saving. HM Revenue & Customs administer the Child Trust Fund.
How it works
Children living in the UK for whom Child Benefit is awarded and who were born on or after 1 September 2002 are entitled to a CTF account. To get the account started, the Government sends them a voucher for £250. Children from lower income families are entitled to an additional £250 which the Government pays direct into their CTF account.
The Government makes a further payment when the child reaches the age of seven. The Government is considering making a further payment to eligible children at secondary-school age. In addition to the Government payments, family and friends can contribute up to £1,200 in total to the account each year.
The money in a child's CTF account can only be taken out when the child reaches the age of 18. There is no access to the money until then unless a child is terminally ill.
Terminal illness
If a child is terminally ill, a person with parental responsibility may get early access to the money in a child's account if:
- Disability Living Allowance under the Special Rules arrangements for the terminally ill has been awarded for the child, or
- other evidence of the child's terminal illness is provided.
Medical practitioners may be asked to provide information about a patients condition on form CTF1500.
Useful links
There is more information about early access to funds and a copy of form CTF1500 on the HMRC website.
- CTF – Early access to funds (HMRC website)
- Child Trust Fund – information for customers (CTF website)