Child Trust Fund bonuses on the cards for children in care

The green paper on looked-after children will propose topping up Child Trust Funds for children in care, the children’s minister and economic secretary have revealed.

All children born on or since September 1 2002 have been eligible for a £250 voucher to open one of the tax-free long-term savings accounts, with children in lower income families receiving an additional payment of £250.

A further payment of £250 will be paid into the accounts when children turn seven, with those in lower-income families again receiving an extra £250. Family and friends can contribute up to £1,200 extra a year to the account.

Highlighting the growing success of the Child Trust Fund, Beverley Hughes and Ed Balls said it would continue to raise awareness about the scheme but also wanted to do more for children in care.

“There is more we can and should do for children in care, who are among the most vulnerable members of our society and often miss out on the financial and support networks taken for granted by others,” said Balls.

Hughes added: “We will consider in the green paper how we can provide extra support to children in care through the Child Trust Fund.”

The green paper is expected to be published in October.