On BBC Morning Live, personal finance expert said 750,000 people born between 2002 and 2011 could benefit
A BBC expert has explained how people are getting letters through from the HMRC – with potential £2,000 payments owed. Appearing on BBC Morning Live, personal finance expert Laura Pomfret told hosts Rav Wilding and Holly Hamilton how people could be sitting on a decent amount of cash.
Child Trust Funds (CTFs) are long-term, tax-free savings or investment accounts for children born in the UK between 1 September 2002 and 2 January 2011, initially funded by government vouchers. They allow parents to save up to £9,000 annually, with the funds belonging entirely to the child and accessible only upon turning 18 – and hundreds of thousands of the accounts have not been claimed.
Ms Pomfret explained: “The government back then gave parents a £250 voucher and £500 for some low-income families to put into savings or investments for their children. And lots of things you didn’t do as a parent, put it in, the government put it away for the family, and so many people have just forgotten about them.
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“The key figures here are quite striking because 750,000 accounts haven’t been claimed. This is totalling £1.5 billion as we’ve kind of highlighted, and the average amount sitting in there, this is the average, is £2,200 because it went in at £250 or maybe £500, and then it’s grown over time.”
The personal finance guru said that there are lots of individuals, such as young people turning 18 or over old older ‘who could be sat on this money but not know it’. She added: “Their parents or grandparents may have forgotten. And so HMRC has announced it’s going to send letters to people aged 21 and over to let them know.
“But if you are someone that’s between 18 and I think it’s going to be approximately 24 given the dates, you can proactively go and see if you can find your child trust fund if you got one, get a hold of it and guess it’s yours and you could be someone who knows someone of that age. If you’re a grandparent, if you’re a parent, have a little think, ask them to check.”
In 2024, more than 450,000 customers, with just their National Insurance number and date of birth, used the free GOV.UK tool to locate their Child Trust Fund.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, has said: “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.”
Third-party agents are advertising their services, offering to search for Child Trust Funds, and agents will always charge, with one charging up to £350 or 25% of the value of the savings account. Using an agent can significantly reduce the amount received, is likely to take longer and customers still need to supply them with the same information they need to do the search themselves.
More information on Child Trust Funds and how to access your savings can be found on GOV.UK.
