BABY bonds have been hailed as a wonderful way of encouraging saving.
The welcome came from Colne Valley Labour MP Kali Mountford as parents began receiving £277 vouchers.
Babies born on or after September 1, 2002, are eligible, as long as their parents have claimed child benefit.
Ms Mountford said: "The vouchers, which can only be used to open a child trust fund account, are designed to give children a head start as adults.
"They will get a further Government contribution - not yet specified - when they are seven. But they will not be able to use the cash until they are 18.
"It is a wonderful way of teaching children the benefits of saving and giving them a little nest egg at 18, when it is often badly needed."