Hundreds of thousands of young people in the UK are being urged to claim cash pots averaging £2,200 each from unclaimed Child Trust Fund accounts, HM Revenue and Customs announced last week.
What Are Child Trust Funds?
Child Trust Funds are long-term, tax-free savings accounts established by a previous Labour government for every child born between September 1, 2002, and January 2, 2011. The government deposited £250 for each eligible child, with funds accessible only after the child turned 18.
The savings are held with banks, building societies, or other providers, and the money remains in the account until withdrawn or reinvested. HMRC revealed that more than 750,000 such accounts remain unclaimed.
Who Is Eligible and How to Claim
Young people now aged 15 to 23 may not know they have an account. Those who already know their Child Trust Fund provider can contact them directly. If not, an online Gov.uk tool called 'Find my Child Trust Fund' helps locate the provider.
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."
HMRC's Statement
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."
