HM Revenue and Customs (HMRC) has issued a fresh call to action for UK households, urging young adults to complete a simple five-minute task that could unlock payouts averaging around £2,242. The initiative focuses on unclaimed Child Trust Funds (CTFs), with officials highlighting that thousands of eligible individuals may be missing out on significant sums of money.
What Are Child Trust Funds?
Child Trust Funds were established under the Labour government led by Sir Tony Blair, in collaboration with HMRC. These accounts were automatically created for children born between September 1, 2002, and January 2, 2011, before being replaced by Junior ISAs. The scheme was designed to encourage long-term savings from an early age.
How Much Money Is Involved?
Initially, the government contributed either £250 or £500 to each CTF, with potential additional top-ups when the child reached seven years old. In 2010, these payments were adjusted to £50 for more affluent families and £100 for lower-income households. Parents and guardians could also boost the funds through voluntary contributions.
According to recent HMRC figures, there are approximately 27,000 unclaimed accounts valued at over £10,000 each. In total, an estimated 758,000 individuals aged 18 to 23 could be owed money from these dormant funds.
How to Claim Your Child Trust Fund
Claiming the money is straightforward and typically takes just five minutes using HMRC's online tool. The process involves submitting a request to locate a fund, and you will need your National Insurance number to proceed. If you were adopted, you should also have your adoption details ready.
Steps to Take:
- Contact Your Provider Directly: If you know which financial institution holds your Child Trust Fund, reach out to them to initiate the claim.
- Ask HMRC for Assistance: If you are unsure of the provider, HMRC can help locate where the account was originally opened.
- Provide Necessary Information: You will need your full name, address, date of birth, and any previous names you have used. Including your National Insurance number is advisable if available.
For parents or guardians seeking a child's trust fund, you will require the child's full name, address, date of birth, and any previous names. It is important to complete the HMRC form in one session, as it cannot be saved and returned to later.
Why Act Now?
With substantial sums lying unclaimed, HMRC is keen to ensure that eligible young adults do not miss out on this financial opportunity. The average payout of around £2,242 can provide a valuable boost for those entering adulthood, whether for education, housing, or other expenses.
This call to action underscores the importance of checking eligibility, especially for those who may have forgotten about these accounts or were unaware of their existence. By taking a few minutes to complete the online process, thousands could secure a significant financial windfall.
