Child Trust Fund (CTF) is a savings and investment account for children. Children born on or after 1 September 2002 will receive a £250 voucher to start their account. The account belongs to the child and can't be touched until they turn 18, so that children have some money behind them to start their adult life. For more information see http://www.childtrustfund.gov.uk/
Update: government announcement on the Child Trust Fund
The Government has stated that it intends to reduce and then stop CTF payments. These changes are likely to take place in August 2010 and January 2011.
Subject to legislation, the Government intends to reduce government contributions at birth, and to stop government contributions at age 7, from 1st August 2010. The Government also intends for HMRC to stop issuing new Child Trust Fund Vouchers from January 2011.
There will be no immediate effect on Child Trust Funds. Legislation is required to implement the government's intentions and until that legislation is in place Child Trust Funds will continue as usual.
