The baffling array of choices available to parents planning to invest a child trust fund voucher is hampering take-up claims new research.

Around a quarter of all vouchers were not invested within the one year period parents were free to choose what they wished to do with the money, meaning that the government has now invested them itself.

But the failure to take-up the offer was nothing to do with a lack of awareness about the scheme, claims research from Family Investments.

Rather, the research claims that many parents were anxious that they would not find the best savings account for their child's money and that they would make the wrong choice.

Almost half - 45 per cent - of parents added that shortening the period to less than a year would have focused their minds and reduced their prevarication.

"While the scheme is clearly experiencing success with 1.8 million child trust funds currently in operation and over £600 million already saved, the focus now is on encouraging parents to use their child's child trust fund as efficiently as possible," said chief executive of Family Investments John Reeve.

"Regular top ups are essential for child trust funds to deliver a healthy nest egg to children when they reach 18 years old. This cash will be key for the next generation of students and first-time home buyers.

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