Thousands of people are owed cash payouts
Hundreds of thousands of people are being encouraged to claim cash pots worth an average of £2,200.
HM Revenue and Customs (HMRC) revealed last week that more than 750,000 young people have unclaimed accounts, following a savings scheme established by a previous Labour government. Child Trust Funds are long-term, tax-free savings accounts created for every child born between September 1, 2022, and January 2, 2011. The government deposited £250 for every eligible child, with the funds only accessible once the child reached the age of 18.
The savings are held with banks, building societies or other savings providers, and the money remains in the account until it is withdrawn or reinvested. It is believed that hundreds of thousands of these accounts are yet to be claimed.
Young people, or their parents and guardians, who already know their Child Trust Fund provider can get in touch with them directly. If not, an online Gov.uk tool is available to help locate the relevant provider.
Rachel Blake, Economic Secretary to the Treasury, said: “Too many young people are missing out simply because they are not aware of where their Child Trust Fund is or how to access it. We are acting to fix that by bringing government and industry together – improving coordination and making it easier for people to find and claim what’s rightfully theirs.”
JP Marks, HMRC’s Chief Executive and First Permanent Secretary, said: “Many young people have Child Trust Fund accounts with an average £2,200 waiting to be claimed. This is their money, and we want to do all we can to help them find and access it.
“If you think you have one, you can use the ‘Find my Child Trust Fund’ tool on GOV.UK to find out where your account is held.”
Many eligible young people, now aged 15 to 23, may not know they have an account.
