YOUNG families will get a helping hand from the Government to start saving for their children's futures, it was announced in yesterday's Budget.

Chancellor Gordon Brown said that trust funds will be started for all new-born babies, with up to £500 invested on their behalf.

Initial investments of £250 will be made, rising to £500 for the poorest one third of children, and the assets will be made available on their 18th birthday.

The investment will grow year-by-year and parents will be allowed to make tax-free contributions of as much as £1,000 a year.

Child Trust Fund payments will be aligned with school years, with endowments backdated to last September, so that every child born since then will have their own fund.

The move was welcomed by families and financial experts who estimate that about three out of ten adults in Britain have no savings.

Jane McAlister, director of North-East stockbrokers Wise Speke, said: "Often, at the age of 18, people are faced with considerable financial outlay to set themselves on their way.

"But young people don't always have money from their parents or savings of their own, but need money to get on to the property ladder, go on to higher education, or even buy a car so they can start work.

"£250 is not an awful lot of money but it is certainly better than nothing and any growth in that could make a real difference."

New parents Joanna and David Wilson, of Croftside, Bishop Auckland, County Durham, welcomed the initiative and said it would encourage them to plan for the future of son Adam, who was born on Sunday.

Mrs Wilson, 29, said: "It is a really positive move. We are fortunate that we both work, myself as a travel agent and David as a lumberjack, but who knows what the future holds. It is good that at least some money will be put aside for children's futures.

"It will also encourage people to start looking ahead and put as much as they can aside for their children. We will certainly save more money for David because we know a start has been made."