NEARLY 2.5 million Child Trust Funds (CTFs) have been opened since the Government went live with the saving scheme less than two years ago, figures today show. Official statistics show that, between April 2005 and the end of December 2006, 2.48 million accounts were opened, with 74% of parents actively involved in the process. CTFs were introduced by the Government as a way of encouraging children into a savings culture and encourage financial capability. Under the initiative, every child born after September 1 2002 receives a voucher worth £250 to get their account started. Parents, family and friends are entitled to top up savings by up to £1,200 a year. Children in lower income families receive an extra payment direct into their accounts of £250. The Government makes a further contribution of £250 into all CTF accounts at the age of seven, with poorer children again getting an additional £250 voucher. A further payment - made when youngsters reach secondary school age - is currently being mooted by MPs. If parents fail to allocate a CTF provider for the child's fund, Her Majesty's Revenue & Customs steps in and opens an account on behalf of the child. Since the scheme was launched, the Government has seen 74% of parents open an account using CTF vouchers - 1.95 million across the UK. Ed Balls, economic secretary to the Treasury, said: "It is really encouraging that three in four parents are now opening accounts for their children, but we want to do more. He added: "We want parents, grandparents and whole families to use the Child Trust Fund and we are asking schools to start using the accounts to teach kids about money and savings. And for children who still have Christmas money unspent, I'd encourage parents to put that money in their CTF account." An inaugural Child Trust Fund Week will take place later this month (from January 15 to January 20) to increase awareness about the saving scheme. Mr Balls said: "To kick of the week, I will be writing to all MPs with details of account opening rates for their constituencies to enable them to consider ways of promoting awareness of the Child Trust Fund in their area." | 
