More than three quarters of parents in the UK have opened accounts to invest their government-sponsored child trust funds on behalf of their children.

The scheme provides a minimum £250 voucher for every child in the country born after September 2002, to be invested by their parents until it matures when they reach 18.

A further £250 will be issued when the child reaches seven. The funds can be topped up with contributions of up to £1,200 every year tax-free.

"I am pleased to announce that more than 1.6 million child trust fund accounts have been opened so far," said Ed Balls, economic secretary to the Treasury.

"But there is more work to do to reach new parents and to encourage the active involvement of those parents whose child has an account.

"We will be doing further promotional work over the summer and autumn in the run up to the launch of the first annual report in September."

A slow initial take up led to warnings that parents unused to investment were nervous about the responsibility of finding the best rate saving account for their children's future.

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