Parents are wasting millions in tax breaks by not taking advantage of Child Trust Funds (CTF), it has been claimed.

According to Unbiased.co.uk, £63 million in tax breaks are not taken advantage of as they are not using the maximum £1200 they can put in an account every year.

The company says its research has shown that only 24 per cent of CTFs have had additional money put in them since being set up with an initial £250 deposit from the government.

Karen Barrett, chief executive of Unbiased.co.uk, said that tax does not have to be paid on interest earned on CTFs, so parents may be unnecessarily losing out.

She added: The government introduced Child Trust Funds as a way of helping parents plan for their children's futures.

The new year is a great time to review both your own and your children's finances .

According to The Children's Mutual, parents are funding their children to the sum of around £30,000 between the ages of 18 and 30, something that could be alleviated by setting up a CTF.