childrens trust fund - anyone know whats happening?

[LittleB]

Does anyone know when this is being scrapped, I've heard lots of different rumours but can't find a definitive answer. I have a dd whose recently turned 5, will she get her 2nd payment, or is that usually aged 7 ( I can't remember)in which case she won't receive it. I'm also pg and ds is due in Dec, I've heard they're scrapping payments from Jan, so if hes born in Dec he'll be ok, but also heard they're redicing to £100 first?!
Does anyone know whats really happening?

I think it's going to £50 in January and will be scrapped in April. The second payment is when the child is 7 so your child won't get that.

I'm glad I had my DD2 this year :D

what is going to happen to the existing funds ? Will they continue or be frozen ? Will we be able to get the money out and use it, or save it elsewhere, or will it be stuck in accounts that presumably will attract minimal interest ?

CTF has been reduced to £50 as of 3 August and will be stopped completely in January 2011.

See here for info

The existing funds will be invested with which ever company you chose and will continue to be invested with them, it isn't frozen. You should check that your provider is paying a decent rate of interest (if deposit based) or is invested in line with your way of thinking (equity based) and if not, then you may be able to transfer to another provider.

As far as I am aware, the money belongs to the child and they will have access to it when they reach the correct age. As parents, you can't spend it.

Thanks, thats really helpful.

i never got the payment for my 7 year old - he was 7 in April.

unless it goes straight into the account?

My DD1 was 7 in May and got her payment.
Unfortunately DD2 is 7 next year so won't get the 2nd payment.