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Use CTFs to help children onto property ladder, says provider - 16/05/2006

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Government vouchers for child trust fund (CTF) schemes should be used to help children buy their own homes later in life, says a children's savings company.

The Children's Mutual is urging parents to start planning as soon as possible to ensure that their children do not struggle to gain a foothold on the housing ladder.

David White, chief executive of The Children’s Mutual, said: "The CTF was created to give every child a financial springboard into adulthood - from covering education costs to a helping hand on to the housing ladder.

"Parents should make the most of this opportunity, and the sooner they can start saving, the better."

Mr White added that investing now could help parents to focus on their own plans for the future sooner.

"In the future, this could mean one less financial responsibility for parents who should be thinking about funding their own retirement," he said.

Parents are being called on to consider the use of CTF vouchers before they expire.

It was recently announced by the government that CTF take-up had fallen short of its target.

Part of the blame was put on parents having too much time to decide what to do with their voucher, so that by the time they made a decision the voucher had already expired.

Miles Bingham, marketing director of Family Investments, said that the findings were not entirely unexpected and that "parents have too much time to make their choice".

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