Waking up to 'baby bonds

New research indicates that the government has plenty of work to do in spreading the word about its new child trust funds.

Two-thirds of parents whose children are entitled to benefit from the "baby bond" scheme still don't know that their kids are eligible, and of those, most have never even heard of the child trust fund, according to a survey this week.

The new funds will benefit every baby born after September 1, 2002, by giving them a government cash handout at birth. This will be £250 for most children but £500 for youngsters from the poorest third of families. A further as yet undecided government payment will be made on the child's seventh birthday, and parents and others can between them put in up to £1,200 a year. The aim is to help build up a pot of money available at age 18.

They aren't due to become available until April 2005 but parents of eligible children will start to receive letters from the government in two months' time, and will get their vouchers from the Inland Revenue between January and March next year.

The research was issued by savings specialist Family Assurance, which this weekend changes its name to Family Investments. "The title 'assurance' was a bit dated," it says.