I have been telling different people in the constituency about the new Child Trust Fund which has been introduced by the Government and which will benefit more than 2,500 families in Birmingham Northfield.
All children living in the UK born on or after 1st September 2002 and who receive Child Benefit, will receive a £250 voucher to open a Child Trust Fund account, with up to £500 given to those in households with lower incomes, and added interest for those born between September 2002 and April 2003.
The accounts will give children a head start as a young adult and will help them understand the importance of saving for the future and managing their personal finances. Parents, family and friends will all be able to pay into the account which will be tax free. In addition, the Government will make a further contribution into the account when the child reaches 7 years old. At 18, the money is theirs to use as they think best, whether this be to go towards driving lessons, travelling, towards a deposit or to keep in a savings account.
This is a really important development, and an achievement that we can be proud of. This inititiative will be useful in a variety of ways and will ensure that all children at the age of 18 have money of their own to invest in their future. Finally, with extra payments to families who have less, it will help ensure a fairer future for all.
