Monday 2nd April 2007
More than 2.6 million child trust funds have now been issued, according to economic secretary Ed Balls.
Mr Balls revealed the figure last week as he welcomed an increase in the proportion of child trust funds opened by parents.
In 2005, three-quarters of child trust funds were opened by the parents of the child, he stated.
The remainder were opened by HM Revenue & Customs on behalf of the child, with an initial deposit from the government of £250.
Mr Balls encouraged parents and other family members to "use the child trust fund not just as a saving tool but as a way of teaching children about money and savings".
"We continue to pursue new approaches to informing people about the child trust fund," he added.
The government is currently piloting a scheme by which those parents yet to open child trust funds are sent a reminder through the post, the secretary claimed.
Figures published last week by engage Mutual Assurance showed that child trust funds may provide a means of saving for single parents who otherwise could not afford to invest in savings accounts for their children.
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