Approximately 827,000 young people have unclaimed Child Trust Fund accounts, with the average pot worth £2,310, HM Revenue and Customs (HMRC) has disclosed. The accounts stem from a savings initiative launched by a former 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 each eligible child, with the money only becoming accessible once the child turned 18.
How to Trace Your Account
The savings are maintained with banks, building societies or other financial providers, and the funds stay in the account until they are withdrawn or reinvested. Many eligible young people, now aged between 15 and 24, may be unaware they possess 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 appropriate provider.
Once you contact your provider, they'll inform you of your account balance. You'll require your National Insurance number to gain access, and you'll also need a Government Gateway user ID.
Taskforce Launched to Reduce Unclaimed Accounts
A Child Trust Fund Taskforce has been launched, bringing together the Government and industry to assist more young people in accessing their savings and reducing the number of unclaimed 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. If you’re unsure where your account is, you can find, quickly, easily and for free using the GOV.UK locator tool."
