The UK government is urging those born between 2002 and 2007 to check if they have unclaimed funds from the Child Trust Fund scheme. Many individuals may be unaware that they are eligible for these funds, which could amount to significant sums.
According to DevonLive, HMRC has recently shared information encouraging eligible individuals to take action. The Child Trust Fund was introduced to help young people build savings for their future, but many accounts remain unclaimed.
Now, individuals between 18 and 22 years old are advised to verify whether they have access to these funds.
What is the Child Trust Fund?
The Child Trust Fund (CTF) scheme was launched in 2005 by the Labour government for children born from September 2002 onward. The initiative aimed to provide young people with savings by the time they turned 18.
The government initially deposited £250 into each child’s account, with additional contributions made as they grew older. For lower-income families, these payments were increased to £500.
Over the years, family members could also contribute to these accounts. However, the scheme was gradually phased out and was completely abolished in 2011.
Eligibility and How to Claim
Anyone born between 2002 and 2007 is eligible to access their Child Trust Fund at the age of 18. HMRC recently urged individuals in this group to check if they have funds waiting in an account under their name. HMRC posted on X, saying: “If your child is between the ages of 18 and 22, they can cash in their Child Trust Fund. The average amount claimed is £2,200.”
If you do not know your provider, HMRC can assist in locating the trust fund account. You will need to have your National Insurance number and, if applicable, details of any adoption for this process. If you are a parent or guardian, you will need the child’s full name, address, date of birth, and any former names used to locate the account.
What Happens When the Trust Fund Matures?
Once the Child Trust Fund matures at the age of 18, the account becomes fully accessible to the individual. At this point, they can withdraw the funds or transfer them to an adult ISA. The government website clarifies:
“The Child Trust Fund scheme closed in 2011. You can apply for a Junior ISA instead. You cannot have a Child Trust Fund as well as a Junior ISA. If you open a Junior ISA, ask the provider to transfer the trust fund into it.“
No further contributions can be made after the fund matures, and the account is considered closed once the funds are either withdrawn or transferred.
However, individuals can continue to add up to £9,000 a year to an existing Child Trust Fund account. The money belongs to the child, and they can only take it out when they’re 18. They can take control of the account when they’re 16.
