Despite the government offering a range of tax breaks for parents opening trust funds for their children, their take-up has not showed massive improvement, experts claim.
According to Unbiased, around £125 million in tax breaks are not being benefited from because 29% of new parents still choose not to open a fund.
And of the existing 71% of parents deciding in favour of a child trust fund, around half are not making full use of the government's £1,200 funding allowance per year.
Commenting on the figures, David Elms, chief executive of Unbiased said: "The government introduced child trust funds as a way of helping parents plan for their children's' futures."
"However, our research has shown that parents are not making the most of this opportunity."
He added: "Parents don't have to pay tax on the interest earned on a child trust fund account, and by not using their full funding allowance each year they may potentially be gifting the taxman more money than necessary."
An Unbiased report on tax breaks shows that this year people will miss out on around £7.9 billion in potential government rebates.
Take-up for child trust fund slow despite tax break
