Saving for children: a baseline survey at the inception of the Child Trust Fund

Authors: Professor Elaine Kempson, Adele Atkinson, Sharon Collard
Funded by: HM Revenue & Customs
Published by: HM Revenue & Customs
Publication date: September 2006
Report number: HMRC Research Report 18

The promotion of saving and asset-accumulation was an important aspect of New Labour government policy, particularly in relation to lower-income households. The Child Trust Fund (CTF) was introduced as a way of promoting asset-accumulation among young people. Child Trust Fund accounts became available in April 2005 to children born from 1 September 2002.

This study had two main aims. First, to provide baseline information on the extent and nature of saving for and by dependent children under 18. This was achieved through three face-to-face surveys:

• A national survey of parents of children aged up to 18 for whom Child Benefit was payable.
• A linked survey of young people aged 11-17 whose parents had already been interviewed.
• A separate suite of questions on a Children's Omnibus with children aged between 7 and 10.

Secondly, the research looked at various aspects of the CTF itself including:

• A booster sample of parents of children eligible for the CTF who were asked additional questions relating to the CTF in the national survey.
• Follow-up telephone depth interviews with some parents, which focused primarily on their experiences and intentions with regard to account opening.
• A review of providers and distributors of CTF account providers.
• Depth interviews with CTF providers, distributors and trade association representatives.

The report provides baseline information on the extent and nature of saving for and by dependent children prior to the introduction of the CTF. It looks at parents' views and intentions regarding the Child Trust Fund, together with an early assessment of the Child Trust Fund market. The research was carried out between March 2005 and January 2006.

Saving for children: a baseline survey at the inception of the Child Trust Fund
Full report (PDF, 451kB) | Research summary (PDF, 83kB) | Technical appendices (PDF, 110kB) | Questionnaires (PDF, 154kB)