The government has launched a new taskforce to help thousands of young people reclaim unclaimed Child Trust Funds worth an average of £2,200 each. Over 750,000 individuals are estimated to have lost or forgotten accounts, which were set up for children born between September 1, 2002, and January 2, 2011.
What Are Child Trust Funds?
Child Trust Funds were introduced by the government to encourage families to save. Each account received an initial deposit of £250, or £500 for children from low-income households. Families could then add up to £9,000 per tax year. Around 6.3 million accounts were created, but many have been lost over time as families moved or forgot about them.
Taskforce Members and Goals
The taskforce includes financial institutions such as One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments, and The Share Foundation. The aim is to encourage young people to access their accounts and track down their savings.
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.”
How to Claim
HMRC has already begun sending letters to individuals since April to remind them of their funds. However, HMRC warns that these letters are the only form of contact; any texts or emails claiming to be from HMRC about Child Trust Funds are scams. Recipients should not provide financial details in response to unsolicited messages.
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.”
Steps to Locate Your Fund
Individuals can check if they have a Child Trust Fund by using the GOV.UK online tool, which requires a National Insurance number. Alternatively, if the provider is known, they can contact the institution directly. The accounts are held with banks, building societies, or other savings providers, not directly by the government.
