HMRC warns many young people can claim thousands from overlooked Child Trust Funds, with average accounts worth up to £2,212.
HMRC Alerts 671,000 People to a Potential £2,200 Payment
By Lydia Amazouz
Published on 24 September 2024 20:21
HMRC is raising the alarm as a great number of young Britons could be unaware that they can claim thousands of pounds from their overlooked Child Trust Fund accounts.
Alarming new numbers from the tax authority suggest that more than 670,000 people aged between the ages of 18 and 22 have failed to claim their cash, with the average account valued at £2,212.
HMRC Urges Young People to Claim Overlooked Child Trust Fund Accounts
The Labour-initiated Child Trust Funds, launched in 2005, were made accessible to children born between 1 September 2002 and 2 January 2011, providing £250 or a boosted £500 to lower-income households to help them start saving. Parents could contribute up to £9,000 every year, with children able to access the funds once they reached the age of 18.
However, many accounts have been forgotten, including some that were automatically opened by HMRC when parents didn’t take action within a year of receiving their vouchers. Although no new Child Trust Fund accounts can be created since 2011, it is still possible to add money to existing ones.
According to the Mirror, Angela MacDonald, HMRC's Second Permanent Secretary and Deputy Chief Executive, is working hard to help young people get their unclaimed money. She says: "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. You don't need to pay anyone to find your Child Trust Fund for you, locate yours today by searching 'find your Child Trust Fund' on GOV.UK."
How to Locate Your Child Trust Fund Account
If you know the name of your Child Trust Fund provider, you can contact them directly to find out more about your account. If you can’t remember your account details, HMRC can help you locate it by filling out a form on GOV.UK.
Parents and guardians of children under 18 can use this service, as well as anyone aged 16 or older who is trying to find their own accounts.
To fill out the online form, you'll need your National Insurance number and a free Government Gateway account. After you enter the right information, HMRC will let you know the name of your Child Trust Fund provider within three weeks.