MP Barry Sheerman has welcomed the Government's introduction of Child Trust Funds.
The new scheme entitles all children born after September 1, 2002, to a savings fund that matures when they reach 18.
Letters telling all parents of the scheme will be sent out in the next few weeks.
From January, information packs and vouchers worth £250 will follow.
Eligible parents will be able to open accounts next April.
The Huddersfield MP said: "New parents in Huddersfield should look out for an important letter from the Inland Revenue in the next few months.
"Information will soon be arriving about Child Trust Funds, a great initiative that will help provide financial support for our children."
There will be no tax to pay on the interest the accounts make.
Families on low incomes will receive extra money and the Government will make an extra payment for all children with a Child Trust Fund once they are seven.
Mr Sheerman added: "These proposals are to be welcomed as a step towards reducing the poverty which faces many children. All parents should grasp this opportunity to help provide for their child's future."