Deeside.com > News
Posted: Tue 24th Sep 2024
Over 670,000 young people aged 18 to 22 are being urged to claim their unclaimed Child Trust Funds (CTFs), with HM Revenue and Customs (HMRC) revealing that the average account holds £2,212.
These savings accounts, established by the government for children born between 1 September 2002 and 2 January 2011, were designed to provide young adults with a financial head start. Many, however, remain unclaimed.
Child Trust Funds are long-term, tax-free savings accounts set up for every eligible child, with the government initially contributing £250 into each account.
Some parents or guardians may have added to these funds over the years.
While the money is held in banks, building societies, or other financial institutions, young people can take control of their accounts at 16 and withdraw the money once they turn 18, when the account matures.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, stressed the importance of young people reclaiming 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.”
Those unsure of their Child Trust Fund provider can use the free online tool available via GOV.UK to locate their account, requiring just their National Insurance number and date of birth.
Ms MacDonald emphasised the simplicity of the process, warning against third-party agents who often charge hefty fees, with some taking up to £350 or 25% of the account’s value.
“You don’t need to pay anyone to find your Child Trust Fund for you,” she added.
In 2023 alone, over 450,000 young adults used the free government service to locate their accounts.
Gavin Oldham from The Share Foundation, which helps young people access their CTFs, noted the significant growth of these investments.
“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 said. “It’s easy and free to find out where your money is.”
More information on how to access Child Trust Funds can be found on GOV.UK.
Spotted something? Got a story? Send a Facebook Message | A direct message on Twitter | Email: [email protected]
Latest News