HMRC is advising parents to verify if their child has a dormant savings account with an average value of £2,000. Child Trust Funds were financial accounts provided to children born between September 1, 2002, and January 2, 2011.
Each child received a voucher of £250, or £500 for those from lower-income households, to initiate the account. Families could then contribute up to £9,000 annually to a Child Trust Fund.
In cases where parents did not open a Child Trust Fund, HMRC would have done so on behalf of the child, leading to numerous young individuals potentially being unaware of their accounts.
Recent data from HMRC reveals that over 670,000 individuals aged 18 to 22 have yet to claim their Child Trust Fund, with an average account value of £2,212.
In a communication on X, HMRC mentioned, “If your child is between 18 and 22, they can access their #ChildTrustFund, with an average claim amount of £2,200.”
While it is not possible to establish new Child Trust Funds, contributions can still be made to existing accounts. Access to a Child Trust Fund is only granted once the child reaches 18 years old.
To retrieve information about your Child Trust Fund, you can contact the provider directly if known. Alternatively, if the account details are lost, HMRC can assist in locating it by completing a form on GOV.UK.
Parents or guardians of children under 18, or individuals aged 16 or above seeking their own account, can request HMRC to find a Child Trust Fund. The process entails providing your National Insurance number and creating a Government Gateway account, which is free.
Upon submitting the necessary details, HMRC aims to disclose the name of the Child Trust Fund provider within three weeks. Additionally, information can be requested via post by writing to: Charities, Savings, and International 1, HMRC, BX9 1AU, including comprehensive account holder details.
In a statement released in November, Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, expressed, “Numerous unclaimed Child Trust Fund accounts exist – our aim is to reunite individuals with their funds by simplifying the process.”
MacDonald further emphasized, “You do not need to pay anyone to locate your Child Trust Fund; discover yours by searching ‘find your Child Trust Fund’ on GOV.UK.”