HMRC is urging people to check as an average of £2,200 is potentially sitting in forgotten accounts
Thousands of people have been encouraged to check whether they could get their hands on thousands of pounds by HM Revenue and Customs (HMRC). Lots of people may qualify, with just a few simple steps required to discover if they are eligible to complete the claim.
In a post on X, HMRC said that anyone celebrating their 18th birthday this year “could have an average of £2,200 waiting” in a Child Trust Fund. The most recent batch of eligible young adults would have been born in 2008, though those born earlier remain entitled to claim any forgotten funds.
What is a Child Trust Fund?
A Child Trust Fund (CTF) is a long-term, tax-free savings and investment account established by the UK Government during Tony Blair’s leadership for children born between September 1, 2002, and January 2, 2011. Families were given initial government vouchers to set up these accounts, and the money becomes fully available to the child upon reaching 18.
The account and its entire contents belong exclusively to the child. Parents or guardians oversee the account until the child reaches 16, when control can be transferred to the young person, reports the Express.
These accounts all began with UK government contributions of £250 (or £500 for families on lower incomes). Anyone can contribute to a Child Trust Fund account, with a maximum of £9,000 permitted to be deposited annually (worked out from the child’s birthday to the day before their next birthday).
How can I access my Child Trust Fund?
Contact your Child Trust Fund provider directly if you know which company holds the account. If you’re unsure of the provider, you can check with your parent or guardian. Alternatively, you can ask HMRC to locate a Child Trust Fund provider and inform you where the account was initially set up.
Before starting, you will need to provide your National Insurance number. If you’re a parent or guardian searching for a trust fund on your child’s behalf, you’ll need:
- the child’s full name, address and date of birth
- any previous names you or the child have used
- the child’s National Insurance number if you have it
Adopted children born between the eligible dates in September 2002 and January 2011 automatically have a Child Trust Fund account unless the funds were previously moved to a Junior ISA. The government may have originally opened these accounts with an initial deposit.
Use this free service to request HMRC to locate a Child Trust Fund provider. It won’t tell you how much money is held in a Child Trust Fund.
Once the account holder turns 18, they can contact the provider directly to withdraw or transfer funds. Before an 18-year-old can access the funds, the provider must verify their identity to safeguard the money. Typically, you’ll need to provide:
- Proof of identity: Passport, birth certificate, or driving licence.
- Proof of address: A recent utility bill, bank statement, or official letter (dated within the last three months).
At 18, the funds become yours to claim and control. Young adults can either withdraw the cash into their own bank account or transfer it into a tax-free Adult ISA or Lifetime ISA (LISA).
