Child Trust Funds not trusted - Barclays

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Reactions to Child Trust Fund letters soon to be sent out by the government suggest most people will take a sceptical view of the new type of savings product, says bank Barclays.

Low-income households – those bringing in less than £13,500 annually – are more likely to welcome the £500 they are set to receive for every child born after September 2002. Those in mid-income brackets are less likely to be impressed by the £250 on offer to each of their eligible children, the bank says. The government and industry also needs to improve on communicating details of CTFs, as most parents, even those who have heard of the products, are unaware of the details, such as who can put money in on behalf of a child. Worryingly, none of the parents in Barclay’s survey said t...

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