HMRC is writing to thousands of 21-year-olds to remind them they have a Child Trust Fund worth £2,200 on average. Child Trust Funds were established by the Government for children born between September 1, 2002 and January 2, 2011. These accounts were opened with an initial deposit of £250, or £500 for children from low-income households. Families could then choose to top up the account with up to £9,000 every tax year.
Thousands of these accounts have become lost or forgotten, prompting the Government to launch a new drive to remind people that they have one. The letter from HMRC will contain information about your Child Trust Fund provider and how to contact them. MoneySavingExpert.com warns that HMRC is only sending out letters as part of this initiative. If you receive a text or email from someone claiming to be from HMRC, it is a scam. HMRC will not ask you to provide any financial details.
Latest figures from HMRC show that 758,000 people aged between 18 and 23 have yet to claim their matured Child Trust Fund, with the average account worth £2,242. Some individuals may have more or less than this amount, depending on how much was saved into the account. Young people can withdraw money from their Child Trust Fund when they turn 18.
If you do not hear from HMRC but suspect you may have a Child Trust Fund, there are ways to track down your lost money. If you know who your Child Trust Fund provider is, you can contact them directly. If not, use the GOV.UK locator tool to find it. You will need your National Insurance number. The savings accounts are not held by the government but are held in banks, building societies, or other savings providers.
Lucy Rigby, Economic Secretary to the Treasury, said: 'Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life. I’m determined that those who have CTFs are made aware they have this money.'
The Mirror previously reported on how accounting and finance student Tayo Olutunde discovered he had a Child Trust Fund worth more than £2,000. Tayo, aged 22 and living in Leeds, told The Mirror: 'I found out about Child Trust Funds on TikTok… this was about two years ago. I was quite interested and I looked into it, but I thought, lets just leave it, as it sounded too good to be true. Fast forward to now, and I spoke to my mum and she said, yeah, I do have an account.'
For those looking to save money, there are various shopping hacks available, including getting a Peppa Pig Tonie Character for free, a 'luxury' duvet set now £40 selling fast, 50% off Neom Mother's Day set, and Next’s stripe vase 'perfect for spring'. However, these offers are unrelated to the Child Trust Fund initiative.
