More than 750,000 people could be entitled to an average payout of £2,200 each as the government launches a campaign to reunite people with their unclaimed savings. HMRC has confirmed that £1.6bn worth of Child Trust Funds (CTFs) remain unclaimed.
What Are Child Trust Funds?
Around 6.3 million CTF accounts were opened for children born between 1 September 2002 and 2 January 2011, predominantly by parents and guardians, with the remainder established by HMRC. Accounts can go unclaimed for reasons such as difficulty locating them, people forgetting they have them, or a decision to leave the funds invested.
CTFs were originally introduced to give every child a financial asset at adulthood. The government now intends to make sure young adults are aware of and can access their accounts.
New Taskforce to Drive Reunification
Economic Secretary to the Treasury, Rachel Blake MP, has convened a new Child Trust Fund Taskforce, bringing together CTF providers and the government to drive a coordinated effort to increase reunification of accounts. Members include One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments and The Share Foundation. The first meeting took place on Monday, 29 June.
More than 750,000 young adults still have unclaimed matured accounts, holding £2,200 on average. The Taskforce will improve coordination across government and industry to encourage more young people to access their unclaimed matured CTFs.
Official Statements
Rachel Blake 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."
JP Marks, HMRC’s Chief Executive and First Permanent Secretary, added: "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."
How to Claim
Anyone born between 1 September 2002 and 2 January 2011 can search for their account on GOV.UK. The search is free, requires only a National Insurance number, and takes just minutes. Those aged 18 or over can access funds immediately.
Jim Islam, Chief Executive Officer of OneFamily, said: "We welcome the creation of the Child Trust Fund Taskforce to help more young people access their savings. We know from our own experience that making this process as easy as possible is essential and we look forward to working together with government and industry partners. Child Trust Funds have already provided a valuable financial boost to millions of individuals who have claimed their accounts as they enter adulthood, making a real difference to people’s lives. We’re committed to playing our part in helping people who have not yet claimed. Anyone born after 1 September 2002 who has already turned 18 will have a Child Trust Fund, and can search for their account on the government website."
