Thousands of young people across the UK are being urged to claim their Child Trust Fund savings, with an average of £2,200 sitting unclaimed in each account. HM Revenue and Customs (HMRC) has revealed that more than 670,000 18 to 22-year-olds have yet to access their savings, which were automatically set up by the government for children born between 1 September 2002 and 2 January 2011.
The Child Trust Fund scheme was introduced by the government to encourage long-term, tax-free savings. Each eligible child received an initial deposit of £250, and in some cases, an additional contribution from the government. These savings accounts were managed by banks, building societies, or other financial institutions, and the funds have been growing tax-free over the years.
Young people can take control of their Child Trust Fund at the age of 16, although the money cannot be accessed until they turn 18, at which point the accounts mature. According to HMRC, many have yet to claim their savings, which could provide a significant financial boost as they begin their adult lives.
Simple Process to Claim Savings
For those who are unsure of where their Child Trust Fund is held, HMRC has simplified the process of locating accounts. The government’s online tool on GOV.UK allows young people to find their Child Trust Fund provider using only their National Insurance number and date of birth. This information can be easily accessed via the HMRC app.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, emphasised the importance of young people claiming their funds. “Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money, and we’re making the process as simple as possible,” she said.
She also warned against using third-party agents who charge for finding Child Trust Funds. Some agents charge up to £350 or 25% of the value of the savings, which reduces the amount that claimants receive. “You don’t need to pay anyone to find your Child Trust Fund for you,” MacDonald added. “Locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.”
Easy Access to Savings
In the past year, more than 450,000 people have successfully used the free online tool to locate their Child Trust Fund. The Share Foundation, an organisation that helps young people access their funds, has linked over 65,000 people to their accounts. Gavin Oldham of The Share Foundation said: “If you are 18-21 years old, the government would have put money aside for you shortly after birth. This investment would have grown quite a bit and it’s in your name.”
He encouraged young people to take advantage of the free tools available, either through GOV.UK or the Share Foundation’s website, findCTF.sharefound.org.
HMRC hopes that increased awareness will prompt young people to claim their savings and use them towards education, housing, or other personal expenses as they transition into adulthood. Full details and guidance on accessing Child Trust Funds can be found on the government website, GOV.UK.