Figures released by two separate organisations show that the majority of parents are failing to top-up Child Trust Funds after they have been opened.

While there are nearly three million of the funds in existence, data issued by the Nationwide Building Society reveals that 60% of parents are not adding to the initial investment made by the Government.

The news comes as the first children to benefit from the accounts prepare to turn five.

The Nationwide's figures appear to be backed up by statistics released by The Children's Mutual, which show that only 43% of parents are topping-up the funds, paying in an average of £24 a month each.

The group said making contributions of this level will give children a lump sum of nearly £10,000 when they are 18 if the money is invested in shares, compared with just £1,200 if the £500 contributed by the Government is not added to.

Matthew Carter, Nationwide's savings director, said: "We are disappointed that so few funds see additional top-ups because, just by saving even the smallest amount, parents, family and friends can ensure that every eligible child, when they turn 18, will have a substantial amount of money saved.

"To get the most out of the Child Trust Fund parents should invest their child's voucher early to ensure they receive the full 18 years worth of interest or investment growth that they are entitled to.

"Encouraging a culture of saving in children can make a real difference to their lives and by topping up their Child Trust Fund on a regular basis, parents can really help to give them a head start in life."

Under the Child Trust Fund scheme the Government gives children born on or after September 1, 2002 a £250 voucher, with children from less well-off families receiving £500, which is to be invested on their behalf.

They receive a further £250 from the Government when they reach the age of seven, and parents, friends and relatives can pay up to £1,200 into the accounts each year to give the youngsters a nest egg for the future.

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