Nearly 80 per cent of parents are missing out on boosting their child's trust fund account by not discussing contributions with relatives, according to a new survey.

Research by child trust fund (CTF) provider Engage Mutual Assurance revealed that more grandparents are adding lump sums to the tax-free child saving accounts than mums and dads.

Over 200,000 grandparents surveyed said they planned to add cash to a CTF and with the average payment standing at £19.80 per month this could equate to an additional £3,960,000 from so-called grey pounds nationally.

"Saving little and often and sharing the responsibility among grandparents, godparents and other friends and family members means less strain on the purse strings at a time when the household budget may already be stretched," explained Karl Elliott at Engage.

A good starting point, according to the research, could be special occasions such as birthdays and Christmas as over a third of parents said these were times when they would feel happier asking friends and family to contribute to the accounts.

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