Thousands of young individuals are being encouraged to verify if they possess a forgotten or misplaced Child Trust Fund. Recent data from HMRC reveals that 758,000 people aged between 18 and 23 have not yet accessed their matured Child Trust Fund, which holds an average value of £2,242. The total amount in each account varies based on the initial deposits made.
Child Trust Funds were established by the Government for children born between September 1, 2002, and January 2, 2011, with an initial deposit of £250, or £500 for children from low-income families. Subsequently, families could contribute up to £9,000 annually to these accounts. When individuals reach 18 years old, they are eligible to withdraw funds from their Child Trust Fund.
HMRC’s Second Permanent Secretary and Deputy Chief Executive, Angela MacDonald, emphasized the importance of checking for potential savings, stating that many individuals might be unaware of these funds. Individuals can locate their Child Trust Fund by searching “find my Child Trust Fund” on GOV.UK. Alternatively, if individuals know their provider, they can contact them directly or use the GOV.UK locator tool if the account details are unknown.
To access the account, individuals need the National Insurance number and date of birth of the account holder. These savings accounts are not managed by the government but are held by various financial institutions. Over 563,000 individuals searched for their Child Trust Fund in the last 12 months, with September 2024 being the busiest month with over 71,000 searches.
Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, commended HMRC’s initiative to encourage young individuals to claim their Child Trust Fund savings. With an average of £2,242 in unclaimed accounts, this money can significantly benefit young people at a crucial stage in their financial journey.
In a recent report, the Mirror highlighted the case of Tayo Olutunde, a 22-year-old accounting and finance student in Leeds, who discovered his Child Trust Fund worth over £2,000. Tayo shared how he initially learned about Child Trust Funds on social media and eventually confirmed his account’s existence with his mother’s help.