The boss of one of Britain's biggest Child Trust Fund providers has called on Polish families living here to make sure they claim payments they are entitled to.
Use it or lose it: Poles are urged to use a child trust fund if they are entitled toDavid White, chief executive of the Children's Mutual, said: 'With the cost of living being high in the UK, it is important that Polish families settling here are aware of the opportunities open to them.'
The CTF was launched on April 6 2005, to start long term savings habits for children, and every child born after September 1, 2002 is entitled to a £250 voucher from the Government.
Eligible children in families with a household income less than £14,495 for 2007/08 receive a an extra payment of £250 into their CTF account. At the age of seven all eligible children will receive a further payment of £250 into their CTF account, again with children in lower income families again receiving an additional payment direct into their account.
Since its launch 3.43m CTF vouchers have been issued.
White said: 'As the cost of higher education, further training and first homes continue to rise, parents are increasingly realising that by saving regularly over the long term they can help meet those costs. The CTF offers an opportunity to do this.'
The Children's Mutual, the UK's only children's savings specialist which provides one in 5 CTFs is raising awareness amongst Polish families of the payments.
Parents can choose to invest the money in a stakeholder fund — which just invests in shares — or non-stakeholder fund — which is both cash or shares. If they do nothing the Government will invest the money in a stakeholder account.
The fund can be accessed by the child at the age of 18 to provide them with a nest egg as they start their adult life.
If the full £500 was invested and grew at five% per year the CTF would be worth £1,000 after 18 years.
Parents along with friends and relatives can add a further £1,200 in total to the tax-free fund each year, which would boost the final total when the child came to collect.
If the child is not a UK resident at the age of 18, they will receive whatever has been invested in their CTF account, but are liable to tax depending on the tax laws in which they reside.