For most children, Child Benefit is the passport to their Child Trust Fund (CTF) account. But Child Benefit is not normally paid for children looked after by local authorities (sometimes referred to as ‘children in care’). The Government is keen to ensure that looked after children benefit from the CTF and has put in place special arrangements for children looked after by local authorities in England, Scotland and Wales or Health and Social Services Trusts in Northern Ireland.
Guidance setting out the special arrangements for looked after children and the obligations on local authorities and Health and Social Services Trusts is available here.
Guidance on arrangements for looked after children
Local authorities provide HM Revenue & Customs (HMRC) with information about looked after children born on or after 1 September 2002.
After 6 April 2005, most children who become looked after by a local authority will already have a CTF account through the normal arrangements, as they will have had Child Benefit claimed for them before they became looked after.
If a voucher has been issued, but not used to open an account when the child becomes looked after, and the date the child entered care is after the date of the Child Benefit claim
- a person with parental responsibility should use the voucher to open a CTF account or
- if there is no one with parental responsibility, HMRC will open an account with £250, as shown on the voucher.
HMRC will write to a person with parental responsibility for the child to let them know about the account and suggest that they manage the account by becoming the registered contact.
For more information about the registered contact use this link
Use this link for more information about managing accounts for looked after children
