The UK Government is urging young adults born between 2002 and 2011 to check for unclaimed funds in their Child Trust Fund accounts. According to a recent update, over 750,000 people are missing out on an average of £2,200 each.
Introduced in 2002, the Child Trust Fund scheme was designed to encourage savings for children and ensure they have financial support when reaching adulthood. While many are aware of these accounts, a significant number of young adults have yet to claim their funds. This missed opportunity highlights a key issue : how many young people are unaware of the savings that could be waiting for them.
Child Trust Funds: A Forgotten Legacy
The Child Trust Fund scheme was launched in 2002 by the Labour Government as a way to promote long-term savings for children. Any child born between September 1, 2002, and January 2, 2011, was automatically enrolled in the scheme. The government initially contributed £250 to each eligible child’s account, with the possibility for parents and guardians to add further funds.
At the time, the initiative was a key part of efforts to combat child poverty and ensure that all children had access to a financial safety net. The funds were to remain untouched until the child turned 18, at which point the individual could access the savings. However, many of these accounts are now forgotten or overlooked by their rightful beneficiaries, according to a recent warning from the UK Government.
The Government’s alert comes as more than 750,000 young adults are yet to claim what is rightfully theirs. The amount in each account varies, but the average total waiting to be claimed is approximately £2,200. For many, this could represent a significant sum, especially for those just entering adulthood.
The process to claim the funds is straightforward, with the government offering a helpful online tool to locate the relevant bank or savings provider. However, according to the Government’s official Twitter account, many young people or their guardians are simply unaware that the funds are available. It is a reminder that even initiatives designed to help can fall into obscurity if there is insufficient awareness.
How to Claim Your Child Trust Fund
If you believe you may have a Child Trust Fund but have not yet claimed the money, the first step is to identify your provider. The UK Government offers an online tool that helps locate the provider associated with your account. To use this tool, you will need your National Insurance number, and in some cases, any adoption information if applicable. For parents or guardians seeking the funds for their children, additional details such as the child’s full name, address, and date of birth will be required.
Once the provider is located, claimants can directly get in touch with the financial institution managing the account. The process to access the funds can vary depending on the provider, but typically involves proving your identity and providing relevant documentation.
While it may seem like a simple task, according to the Government’s advisory post, many young adults have missed the opportunity to access these funds because they were unaware of the accounts. The Child Trust Fund was designed to be a long-term savings solution, but for some, it has become a forgotten resource.
