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New rules make 'child trusts simpler to set up'
01 April 2008
New rules designed to take the hassle out of setting up a Child Trust Fund (CFT) will have a "very positive impact", it has been claimed.
The government's CFT initiative, which aims to give children a financial head start when they enter adulthood, has been criticised because the process is often deemed too cumbersome for parents.
A two-step process involving making an online or phone application followed by sending the government's voucher by post will be replaced in April 2009 by a system where parents will simply have to phone through the voucher number.
Miles Bingham, head of savings and investments at Family Investments, said that making the rules simpler will have positive benefits.
"With parents with eight week old children - just simple things like putting a piece of paper in an envelope and sending it off don't always get done," he said.
"So there are a whole bunch of people who are applying for a CTF but never complete the process, because they don't actually send us the physical voucher," he explained.
Currently, the government gives parents of new born children a voucher for £250 to invest on behalf of the child through a trust account. 
