Child Trust Funds

odgeuk

For the first time since they were awarded, I've looked at the CTFs for my two children (aged 16 and 14).

Both were put into Foresters when the original £250 was awarded from the Government.

I was surprised to see that the difference in current value between the two is significant, with one being worth £938 (the 16yr old) and the other only £417!

Both only indicate that £250 has been paid in but I read that a further £250 award was supposed to be awarded on their 7th birthdays?

Why would two CTFs, set up only 20 months apart, have performed so differently? It's not like the £521 difference between the two would all have been earned in that first couple of years?

And where is the other £250?

Have I misunderstood something?

It looks like more 'units' were purchased for the oldest CTF (446 units @ a unit price of 2.1 vs 198 units @ a unit price of 2.1)

ErinGoBrath

Could the 16 year old have received a starting payment of £500 instead of £250 due to the parents being in receipt of means tested benefits at the time?

Alexland

The second £250 payment for 7 year olds ceased around August 2010 - could this explain the difference? Depends on their exact birthdays. Alternatively could the first child have benefited from the extra £250 at birth for low income families?

ErinGoBrath

Alexland said:

The second £250 payment for 7 year olds ceased around August 2010 - could this explain the difference?

Based on the OP they would both have been under 7 at that time?

Alexland

ErinGoBrath said:

Based on the OP they would both have been under 7 at that time?

As I said it depends on their exact birthdays but yes I agree more likely to be the extra £250 for low income families at the start. Either way it should answer the OP's question about what happened to the payment at 7 years.

odgeuk

No low income payment at the start for us.

Mystery Solved I think. As told by Foresters:

Kid 1 - Born 02/2005 - Was 7 on 02/2012  - Received £250 bonus and more units were purchased
Kid 2 - Born 10/2006 - Was 7 on 10/2013  - Did not receive £250 due to scrapping of scheme.

Oddly though, there is this from the Interweb:

"Unfortunately, very few children benefited from the extra voucher when they turned seven because the Coalition Government cut this extra perk back in 2010 as part of its austerity measures.

The Gov.uk website advises that: 'Eligible children who turned seven between 1 September 2009 and 31 July 2010 or who qualified for Disability Living Allowance between 6 April 2009 and 5 April 2011 were eligible for extra payments into their CTF accounts.'

This means that, for children not eligible fore Disability Living Allowance, a second voucher would only be issued if they turned seven within a small window of less than a year spanning 2009 and 2010."

Sounds like Kid 1 got lucky.