HMRC is sending out letters to thousands of young people, urging them to claim forgotten savings accounts worth an average of £2,200. The awareness drive targets Child Trust Funds (CTFs), long-term tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011.
Unclaimed Accounts
According to the Government, more than 750,000 CTF accounts remain unclaimed. HM Revenue and Customs (HMRC) will be writing to 21-year-olds whose accounts are still unclaimed, informing them of their CTF. The Government has launched an awareness campaign encouraging young people to locate their CTFs through the free “find my child trust fund” service on gov.uk.
How CTFs Work
Once the account holder turns 18, the CTF matures, and they can choose to withdraw the money or reinvest it. The savings accounts are not held by the Government but by banks, building societies, or other savings providers. Many children received around £250 from the government when their CTF was started, while those from low-income families or in local authority care may have received an additional £250.
How to Claim
If young people or their parents or guardians already know who their CTF provider is, they can contact them directly. Economic Secretary to the Treasury Lucy Rigby convened a roundtable with CTF providers to explore how the sector can better reconnect savers with their accounts. Ms Rigby stated: “Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life. I’m determined that those who have CTFs are made aware they have this money. Together, we will ensure funds from these child trust funds can be accessed by young people to help give them the best start to adult life.”
