Child Trust Funds launched

Children will get at least £250 in their first CTF payment

BBC Radio 4's Money Box was broadcast on Saturday, 15 January, 2005, at 1204 GMT.

The programme was repeated on Sunday, 16 January, 2005, at 2102 GMT.

Read the programme transcript

The new Child Trust Fund (CTF) was formally launched on Tuesday, 11 January, by Chancellor Gordon Brown and the Minister for Children Margaret Hodge.

The first information packs and vouchers are on their way to parents and a major advertising campaign is to begin on Monday, 17 January.

HAVE YOUR SAY Are you expecting CTF vouchers? What do you plan to do with the money? Are CTFs a good idea, or a waste of taxpayers' money? Send us your comments

All children born from 1 September, 2002, will get £250, and the poorest third of families will get £500, which must be invested in a special CTF account.

A second payment will be made when the child reaches seven.

Announcing details of the 75 official providers and distributors, the chancellor explained the aim was to give "not just some, but all children... the best possible start in life".

To discuss how parents should invest the money, we were joined by:

Stephen Timms, the minister responsible for the CTF

David White, Chief Executive of Children's Mutual, one of the most enthusiastic providers

Philip Williamson, Chief Executive of Nationwide, one of the few providers to offer a cash CTF

Anna Bowes, Independent Financial Advisor at Chase de Vere.

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Presenter: Paul Lewis
Producer: Jennifer Clarke
Reporter: Samantha Washington