Hundreds of thousands of young people in the UK are being urged to claim cash sums averaging £2,200 from unclaimed Child Trust Fund accounts, HM Revenue and Customs (HMRC) announced last week. More than 750,000 accounts remain unclaimed, according to HMRC, following a Labour government initiative that introduced savings schemes for children.
What Are Child Trust Funds?
Child Trust Funds are long-term tax-free savings accounts established for every child born between September 1, 2002, and January 2, 2011. The government deposited £250 for each eligible child, and the funds become accessible only when the child turns 18. The savings are held with banks, building societies, or other savings providers, and the money remains in the account until it is withdrawn or reinvested.
How to Claim the Money
If young people or their parents or guardians already know who their Child Trust Fund provider is, they can contact them directly. If not, an online Gov.uk tool is available to help identify the provider. Rachel Blake, Economic Secretary to the Treasury, said: "Too many young people are missing out simply because they are not aware of where their Child Trust Fund is or how to access it. We are acting to fix that by bringing government and industry together - improving coordination and making it easier for people to find and claim what's rightfully theirs."
HMRC Encourages Claims
JP Marks, HMRC's Chief Executive and First Permanent Secretary, said: "Many young people have Child Trust Fund accounts with an average £2,200 waiting to be claimed. This is their money, and we want to do all we can to help them find and access it. If you think you have one, you can use the 'Find my Child Trust Fund' tool on GOV.UK to find out where your account is held." Many eligible young people, now aged 15 to 23, may not know they have an account.
