Family Investments, the child trust fund (CTF) provider, has welcomed the government's decision to conduct a consultation into the development of a potential replacement product for the current CTF .

The provider described any steps taken towards continuing the work that the CTF has begun as very positive.

What is needed now, however, is a real and strong commitment to safeguard the future of childrens savings, Family Investments said.

But irrespective of the consultation's outcome, the CTF is still due to be scrapped next year.

If a replacement product isn't developed in the very near future, thousands of children will grow up without any savings or financial grounding, the provider said. The impact of this cannot be underestimated.

Family Investments has helped approximately 1.7 million Britons to invest in their family's future.