Launching the child trust fund in the run up to the general election shows Labour wants to "bribe people with their own money", the Conservatives have said.

Senior ministers including Gordon Brown officially launched the government's scheme on Tuesday.

It will take effect next week, when all newborn children will receive grants of up to £500 from the state.

Babies born since September 2002 will be entitled to vouchers of £250, with the sum rising to £500 for poorer families.

An addition payment will be made by the government on the child's seventh birthday.

Government Response: HM Treasury

Chancellor Gordon Brown said: "Our aim is a