A-Z of Benefits

£250 at birth (£500 if family on low income)

Who is it for?
All children born since Sept 1st 2002

Who pays it?
HMRC – 0845 302 1470

Which leaflet? And how is it claimed?
See www.childtrustfund.gov.uk

What are the age limits?
All children born since Sept 1st 2002.

National Insurance based?
No.

Means tested?
No – and an additional payment made to families on maximum rate of child tax credit and looked after children

How long does it last?
Paid as a voucher, and may be ‘topped-up’ in later years by Government and relatives. Not accessible by anyone until child reaches 18.

What is effect on other benefits?
Disregarded

Is it taxable?
No and proceeds are not taxable either

Increases for dependants?
No

Payable if in EU or other?
Trust Fund, once set up, can be accessed at 18 if client moves abroad

Points to watch
Parents who do not use their vouchers to set up a trust fund account within 52 weeks of issue will have account chosen for them by HMRC. Looked-after children get higher value voucher and local authorities need to liaise with HMRC over locating where the child is living. Adoptive parents can apply to manage the account. Special rules about early access where a child is terminally ill. 

The A-Z of Benefits 2008 was compiled by Gary Vaux and Community Care.