Young adults are being advised to check for forgotten or misplaced Child Trust Funds, as thousands of individuals aged between 18 and 23 have not yet claimed their matured accounts, according to recent data from HMRC.
Statistics reveal that there are approximately 758,000 unclaimed accounts, with an average value of £2,242. The actual amount in each account varies depending on the contributions made over the years.
Child Trust Funds were established by the Government for children born between September 1, 2002, and January 2, 2011, with an initial deposit of £250 or £500 for children from low-income families. Families could contribute up to £9,000 annually into these accounts, and individuals can access the funds when they reach 18 years old.
If individuals are unaware of their Child Trust Fund provider, they can utilize the GOV.UK locator tool by providing the National Insurance number and date of birth of the account holder to track down the account, which is not managed by the government but by various financial institutions.
In a bid to reunite young people with their unclaimed savings, HMRC’s Angela MacDonald encouraged those aged between 18 and 23 to check for potential funds by searching “find my Child Trust Fund” on GOV.UK or contacting their provider directly if known.
More than 563,000 individuals searched for their Child Trust Funds online in the past 12 months, with September 2024 seeing the highest number of search queries. Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, commended the initiative, highlighting the financial benefits young people can gain from accessing their funds.
A recent story featured accounting and finance student Tayo Olutunde, who discovered a Child Trust Fund worth over £2,000. Tayo, residing in Leeds, shared his experience of finding out about the fund and eventually confirming its existence with his mother.