Around 827,000 young people have unclaimed Child Trust Fund accounts averaging £2,310 each, according to HM Revenue and Customs (HMRC). The funds stem from a savings scheme introduced by a previous Labour government.
Child Trust Funds are long-term, tax-free savings accounts set up for every child born between September 1, 2002, and January 2, 2011. The government contributed £250 for every eligible child, with the funds only becoming accessible once the child turned 18. The savings are held with banks, building societies or other financial providers, and the money stays in the account until it is withdrawn or reinvested.
Who can claim and how
Many eligible young people, now aged between 15 and 24, may be unaware they have an account. Young people, or their parents and guardians, who already know their Child Trust Fund provider can contact them directly. Otherwise, an online Gov.uk tool is available to help trace the relevant provider.
Once you contact your provider, they will inform you of your account balance. You will need your National Insurance number to gain access. If you do not know your National Insurance number, you can find out how to request it. You will also need a Government Gateway user ID, which can be set up online if you do not already have one.
Taskforce to reduce dormant accounts
A Child Trust Fund Taskforce has been established to bring together the Government and industry in a bid to help more young people access savings that are rightfully theirs, while also reducing the number of dormant accounts. Economic Secretary to the Treasury, Lucy Rigby, who heads the Taskforce, said: "The oldest matured Child Trust Fund accounts are now more than six years old and some young people may not know they have savings waiting for them. The Taskforce has been set up to help those young people who don't know about their savings."
Rigby added: "If you're unsure where your account is, you can find, quickly, easily and for free using the GOV.UK locator tool."
