More than 670,000 young people aged 18 to 22 are being encouraged to take action and claim their unclaimed Child Trust Funds (CTFs), with the average account containing approximately £2,212. These savings accounts were established by the government to give children born between 1 September 2002 and 2 January 2011 a financial head start.
Child Trust Funds are long-term, tax-free savings accounts set up for every eligible child, with the government initially contributing £250 to each account. Some parents or guardians may have added further funds over the years, allowing these accounts to grow.
While these savings are managed by banks, building societies, or other financial institutions, young people can take control of their accounts at 16 and withdraw the funds when they turn 18, at which point the account matures.
Angela MacDonald, HMRC’s Second Permanent Secretary, emphasized the importance of reclaiming these funds, stating, “Thousands of Child Trust Fund accounts are sitting unclaimed. We want to reunite young people with their money, and we’re making the process as simple as possible.”
For those uncertain about their Child Trust Fund provider, a free online tool is available on the GOV.UK website. Young individuals will need their National Insurance number and date of birth to locate their account easily.
MacDonald warned against using third-party agents who often charge significant fees, sometimes taking up to £350 or 25% of the account’s value. “You don’t need to pay anyone to find your Child Trust Fund for you,” she added.
In 2023, over 450,000 young adults successfully used this free government service to locate their accounts. Gavin Oldham from The Share Foundation, an organization dedicated to helping young people access their CTFs, highlighted the importance of these funds: “If you are 18-21 years old, the government would have put money aside for you shortly after birth. This investment would have grown quite a bit, and it’s in your name.”
For those who believe they might have unclaimed Child Trust Funds, it’s crucial to act quickly. The process is simple, free, and designed to help young adults regain access to their savings, paving the way for future financial opportunities.