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Your Child Trust Fund questions answered by ASDA Finance

Child Trust Fund Q & A

Here are some answers to the questions you may have following the Government’s plans to remove Child Trust Funds.

I’ve got a CTF account for my child with Asda – what will happen?

There’s no need to worry. Your child’s CTF will continue to run as normal. This means that:

  • It will continue to benefit from tax efficient investment.
  • Up to £1200 a year can still be contributed.
  • The CTF will continue to run until your child’s 18th birthday.

I’ve got a voucher – what should I do with it?

Great news, this means that your child will benefit from having a Child Trust Fund account. You need to place your voucher with a provider to open a CTF before the expiry date on the voucher.

I’ve lost my voucher – does this mean my child will lose out?

Not at all, you can apply for a replacement voucher at the CTF website. You will need to make sure that you place the voucher with a provider before its expiry date.

What will happen to the Age 7 payments?

If your child is due to turn 7 before 1st August 2010 they will still get the additional payment. Unfortunately after this date no other Government payments will be made to children turning 7.

I’m thinking about cancelling my direct debit – what should I do?

You can cancel or change your direct debit at any time. However, the Government announcement doesn’t mean you automatically have to do this. Your child is one of the fortunate children of this generation to have a Child Trust Fund and you can continue to make use of this tax efficient savings account until your child reaches 18, if you wish to.

I’m pregnant – will my baby be entitled to a Child Trust Fund?

Congratulations!

If your baby is born before 1st August 2010 they will receive a £250 voucher.

If your baby is born any time from 1st August to 31st December 2010 they will receive a £50 voucher.

Unfortunately, if your baby is born on or after January 1st 2011 they won’t be entitled to a Child Trust Fund.

I’ve already got a CTF for my child but we’re planning on having more children. Will they be able to have one?

Children born after 31st December 2010 won’t be entitled to a Child Trust Fund.

I’ve got a voucher but I don’t know whether I should do anything with it if the CTF’s being removed.

If you have a voucher then your child is entitled to a CTF account. If you want a say in where their account is opened, then you should place it with a provider before the expiry date. Your child is entitled to all the same benefits of CTFs as before. If you choose not to place the voucher the Government will open a CTF account for your child once the voucher has expired.

I think I’m entitled to an additional payment but my tax credit award hasn’t been finalised yet – what will happen?

If it’s your tax credit award for 2009/10, whether or not the award is finalised yet, your child will still get the additional payment if you qualify.

I’ve opened a CTF account but I haven’t yet got my additional payment (the £250 for children in lower income families) – will I still get it?

Yes. The additional payments for children who became entitled to a CTF account before August 2010, and whose family qualifies, will still be paid.

My child is disabled, will they still get a government payment?

If your child has a CTF account, and is entitled to Disability Living Allowance at any time in the 2010-11 tax year, then they will be entitled to an additional payment into their CTF account, and this will be paid. From tax year 2011-12 onwards, the Government intends that these payments will stop.

I still have some questions, who can I talk to?

You can phone 0845 900 0920 and we’ll be happy to help. (Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm. Calls charged at a maximum of 5p a minute from a BT landline, other networks may vary. Please note calls will be recorded for training and security purposes).