LONDON, April 4 /PRNewswire/ --

- 6 April 2009 Marks Fourth Anniversary of Child Trust Fund 'Going Live'

Over GBP3.5 billion could have been injected into the UK economy this year if Child Trust Funds (CTFs) had been introduced 18 years ago, according to new calculations released today by The Children's Mutual (http://www.thechildrensmutual.co.uk/) to mark the fourth anniversary of the scheme going live.

The leading Child Trust Fund provider's calculations also show that nearly half of today's 18-year-olds could have received just over GBP9,975 each, based on real stock market performance since 1991 and its customers' savings behaviour today. Whilst past performance is no guide to what may happen in the future the figures being released demonstrate the potential future power of the CTF, and show how it could provide a generation of young adults with significant financial assets at age 18 which may help finance their aspirations and bolster the UK economy.

According to The Children's Mutual, engagement with the Child Trust Fund remains strong despite current testing economic times. Since its inception in April 2005, more than four million Child Trust Fund accounts have been opened in the UK and nearly one million Child Trust Funds accounts (22 per cent) are being topped up regularly through monthly direct debits by parents and wider family.

David White, Chief Executive of The Children's Mutual said: "The CTF was introduced to give every child a tangible financial asset when they reach 18. And recent financial history illustrates that saving over the long term can be far more robust than many people may think, making it undeniably important to individuals and the country alike. On the fourth anniversary of the CTF going live, we are urging families with younger children to ensure they have plans in place to help tackle the cost of the future and to consider saving regularly over the long term."

According to The Children's Mutual's figures, before the Child Trust Fund was introduced just one in five children had a long-term savings account, now nearly 50 per cent of families who actively place their child's CTF voucher with the leading CTF provider set up a direct debit when they open the account. And with many more families now having more than one CTF eligible child, top up levels among The Children's Mutual's customers are remaining consistent, demonstrating families' commitment to the scheme despite the current climate.

Mr White said: "We are encouraged that the increase in the number of families with more than one CTF eligible child hasn't impacted on top up levels; in real terms this means that the level of commitment by parents is increasing all the time. We believe the CTF is changing the nation's savings habits for the better and in recessionary times this is very positive news indeed."

Going Voucherless

The four-year anniversary of the Child Trust Fund marks a key change in the application process as parents will no longer need to supply a paper CTF voucher in order to open an account (provided that the company they choose has agreed to update to a voucherless system). According to The Children's Mutual, the move to a 'voucherless' process could increase the number of actively placed CTFs by as much as 10 per cent. The company will be introducing the system as part of its own processes from Monday 6 April.

Mr White said: "The move to voucherless account opening is something that we have long lobbied for. It will make the fund opening process easier still and will encourage even more parents to get involved. Any steps to encourage an even greater take up of the Child Trust Fund should be warmly welcomed so we can build on the progress already achieved in the last four years in cultivating a generation and a nation of savers."

    Media Contact
    For further information please contact Stephanie Quantick
    The Children's Mutual
    Web: http://www.thechildrensmutual.co.uk/
    Tel: +44(0)1892-775-348
    Email stephanie.quantick[at]thechildrensmutual.co.uk

SOURCE The Children's Mutual