More than 750,000 people in the UK could be missing out on a £2,200 payment from the government's Child Trust Fund scheme. Residents born between September 1, 2002, and January 2, 2011, are being urged to check if they are eligible for the payout.
What Is the Child Trust Fund?
The Child Trust Fund (CTF) scheme was introduced by the UK government to provide young people with a lump sum of money when they turn 18, encouraging savings habits into adulthood. The government says people born between these specific dates whose parents received child benefit will likely have a trust fund account.
Generally, these accounts were opened by a parent or guardian. However, in some cases, HM Revenue and Customs (HMRC) may have opened an account on a young person's behalf. This means that individuals turning 18 after September 1, 2020, can access the account and withdraw the money. Alternatively, they can transfer the funds to an Individual Savings Account (ISA) or another type of savings account.
How to Check Eligibility
A statement on the UK Government website explains: "If your parent or guardian does not have details of your CTF account you can ask HMRC who your CTF provider is by completing an online form at www.gov.uk/find-child-trust-fund. Once you get in contact with your provider, they’ll tell you how much you have in your CTF account."
To access the form, individuals need their National Insurance number, which is made up of two letters, six numbers, and one letter (e.g., QQ123456A). Those who do not know their National Insurance number can find out how to request it through the helpline.
What Happens If You Don't Act Immediately?
The government reassures that if someone is not able to contact their CTF provider immediately after their 18th birthday, they should not worry. The provider will keep the investments safe in a protected account until the individual decides what to do with the money.
For more information, visit the UK Government website. Eligible individuals are encouraged to act promptly to claim their funds.
