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HMRC expresses trust fund worries

Many British children are missing out on big financial benefits by their parents not setting up a trust fund.

Since 2005, the government has been promoting its fund scheme - whereby those who have young children are sent a £250 voucher.

The parents then send this voucher back, agreeing that it is to be invested for the future: the amount then accrues interest as the child grows up - and can only be claimed when the trust fund holder turns 18.

However, new figures from HM Revenue & Customs (HMRC) show that around 24 per cent of the vouchers issued in the first six months of the scheme expired, because they were not sent back.

This total increased to 30 per cent between the end of 2006 and the end of 2007.

Commenting, Jason Hollands at F&C Investments said: "This suggests that vouchers which are collectively worth literally millions of pounds have either been chucked in the bin, or left languishing in drawers or stuffed behind the sofa."

HMRC said that around 750,000 of the vouchers have gone unclaimed so far.

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