Frequently Asked Questions

I've recently had a baby and have heard that the government has set up a trust fund for children. What are they, and how do I claim?

The Child Trust Fund is a savings and investment account for children. The government makes payments to a child through this account and your family and friends can also contribute. When your child is 18, they will have access to the account and will be able to spend the money however they like.

If your child was born on or after 1st September 2002, and you are currently getting Child Benefit, they are eligible for a Child Trust Fund account.

An initial payment of about £250 will be paid when an account is set up, followed by another payment on your child's seventh birthday. If you are currently also receiving Child Tax Credit and your income is less than £13,910, there will be an additional payment of £250. You and your family and friends can also contribute up to £1,200 per year to the fund.

You do not have to claim for the scheme as vouchers will be issued automatically to people who are getting Child Benefit for a child who qualifies. However, you do have to open a Child Trust Fund account for your child in order to receive payment.

If you have not opened an account one year after receiving the voucher, the government will do this for you, but your child will lose interest on the money.

My debts are getting out of control and I can’t possibly pay them all. What can I do?

If you are worried about your debts, try not to panic but do not ignore your problem. Talk to the people or organisations you owe money to and let them know that you are having problems. Most organisations will be more helpful if you approach them first.

If you have more than one outstanding debt, or have fallen behind in paying your bills, you need to work out which debts are priority debts. A priority debt is one that could have serious results if unpaid. Not paying your rent or mortgage would leave you homeless, or not paying your gas or electricity bill could leave you being cut off and taken to court. When you have decided which are priority debts, work out how much you can realistically afford to pay back.

You will need to think carefully before taking out further loans to pay off existing debts. You may end up paying back a lot more than you borrowed and the interest rates may be extremely high. Some loans can be secured against your home and you could end up losing it if you fail to make repayments. Check your income and see if there are any benefits or tax credits you are entitled to that you are not getting. Look carefully at your spending and see if there is anything you are able to cut down on, again you can work out what are priority expenses and what things are not so necessary. You can also look at ways of reducing your outgoings, for example you could shop around for a cheaper gas or electricity provider, or look at cheaper mortgage or insurance providers.

Another option might be to go bankrupt..

You do not need to pay for debt advice. We give free, independent and confidential advice. They can help you work out repayments and negotiate with your creditors.

I've had a personal letter telling me that I've won a prize in a lottery. How can I find out whether it's genuine or not?

If you find that you have unexpectedly won an exciting prize in a prize draw, lottery or other form of promotion you should be suspicious. While some of these approaches are genuine, some are dishonest attempts to trap you into parting with your money. Many common scams take the form of prize draws or lotteries designed to trick the unwary. Scams are usually based outside the UK although they may use UK Post Office boxes.

You can find out about common scams on the department of trade website at http://www.dti.gov.uk/ccp/scams/page1.htm or the Office of Fair Trading website at www.oft.gov.uk.

Am I entitled to paid holiday?

Most workers are entitled to four weeks' paid holiday a year by law. Some workers are not automatically entitled to this leave (for example, members of the armed forces or police force) and these workers have to rely on their contracts of employment for their rights to holiday.

Unless you're in one of these special categories of worker, you are entitled to four weeks paid holiday each leave year. Your employer will decide when the leave year starts and finishes - it may run from 6 April one year to 5 April the next, or it may run from 1 January to 31 December. You are entitled to paid holiday leave from the day you start work - you do not have to have worked for any minimum time to qualify. A week's leave will be based on your normal working week, so if you usually work three days a week, you will be entitled to twelve days paid leave a year. If you work five days a week, you will be entitled to twenty days paid leave a year. A week of holiday pay should be paid at the same rate as your normal week's pay.

There is useful information about paid holiday in the Guidance document on the Department of Trade and Industry website at www.dti.gov.uk/er/work_time_regs.  Some workers are not entitled to holiday pay, contact your citizens advice bureau or www.adviceguide.org.uk

Can my employer force me to give back an overpayment of wages?

Your employer can only make deductions from your wages in limited circumstances. They can deduct tax and national insurance (NI) and they can also make other deductions for which they have previously got your written consent or which are allowed in your contract of employment. (Different rules apply for shop workers).

An exception to the rule that consent is needed to make a deduction is where there has been an overpayment of wages (or some other payments, for example, expenses). In law, the employer can recover these through a deduction of your wages even if this is without your agreement.

However, if your employer gave the impression that the wages were correct at the time they were paid, you did not know that you had been overpaid and you have spent the money (and to pay it back would put you in a worse financial position than if the overpayment had not been made) you should argue that you should not have to repay the money.

The rules for shop workers and other groups are different and there are some deductions which are permissible further information, contact your local Citizens Advice Bureau or www.adviceguide.org.uk

My grandmother is going to be 100 in a couple of months and I want to be sure she gets a message from the Queen. How do I go about it?

There is a special office in Buckingham Palace which deals with these messages. You can apply for yourself or on behalf of someone else. Application forms are available from:-

The Anniversaries Office
Buckingham Palace
London SW1A 1AA
Tel: 020 7930 483