Details of Service
The Child Trust Fund (CTF) is a Government led initiative to encourage financial awareness in children. All children born on or after 1 September 2002 and living in the United Kingdom are eligible. For the majority of children, the CTF account will be opened by the parent or carer once child benefit has been awarded. However, for children looked after by local authorities child benefit can not be claimed. Special arrangements exist for this group of children to ensure that they also benefit from the CTF scheme.
For most looked-after children, there will be someone with parental responsibility who can manage the account and be the registered contact until the child turns 16. For children where there is no-one (or no-one appropriate) with parental responsibility, the accounts will be managed by the Official Solicitor in England and Wales, the Official Solicitor for Northern Ireland in Northern Ireland and the Accountant of Court in Scotland - see The Child Trust Funds (Amendment No. 2) Regulations 2005 and the CTF legislation.
All children born on or after 1 September 2002 and who are being looked after by a local authority on 6 April 2005, are entitled to receive a government payment on the more generous basis awarded to low income families. It is the duty of the local authority to provide HM Revenue and Customs with information regarding this group of children. HM Revenue and Customs will in turn open a CTF account, once satisfied that an account does not already exist. For looked after children, there are four amounts that can be awarded as follows:
Child's date of birth Payment:
- 1 September 2002 - 5 April 2003 £554
- 6 April 2003 - 5 April 2004 £536
- 6 April 2003 - 5 April 2005 £512
- 6 April 2005 onwards £500
The Official Solicitor (or Accountant of Court) will assume management of the accounts, either until someone with parental responsibility becomes available or until the child reaches the age of 16, whereupon the child will take over management of their own account. The Official Solicitor will not engage in the financial education of the child but will act in their best interests, by considering which provider and which type of account to use. The Official Solicitor will effectively step into the shoes of the parent.
In the first instance a provider will be allocated to the child's account by HM Revenue and Customs on a rota basis. The Official Solicitor, on receipt of the account, will register himself as the registered contact. He will then undertake an initial review of the account by reference to information provided by the local authority such as the religious or ethical beliefs of the child and also based on generic external advice from a financial advisor. This review will be repeated on a annual basis.
Having taken control of the CTF account, the Official Solicitor will write to the child explaining that he has taken control of the account and what his role as registered contact will be. There will be at least annual contact with the child, whereupon the Official Solicitor will send the child a statement. The Official Solicitor will also write to the child if he decides to move the account, to explain the reasons for his decision.
The Official Solicitor will contact the child approximately 2 months before the child's 16th birthday explaining that on turning 16, the role of the Official Solicitor ceases. The Official Solicitor will encourage the child to contact the provider to become the registered contact.
If someone comes forward who claims to have parental responsibility for the child, satisfactory evidence will be sought from them (for example; an Adoption Certificate) of parental responsibility before the Official Solicitor surrenders control of the account. On being satisfied, the Official Solicitor will issue a letter for this person to take to the CTF provider so they can become the registered contact.
In the case of a terminally ill child, the Official Solicitor, as the registered contact, will be required to authorise any withdrawals from the fund. The Official Solicitor will not actively engage in withdrawing money, but on receiving confirmation from HM Revenue and Customs that money can withdrawn, will authorise the CTF provider to make a payment to a named individual in the local authority.