HMRC Calls on Young People to Claim Unclaimed Child Trust Funds During Apprenticeship Week
HM Revenue and Customs is making a fresh appeal to young people across England who have not yet accessed their Child Trust Fund savings, urging them to claim during National Apprenticeship Week from February 9 to 15. While apprenticeships offer a valuable pathway into the workforce, new data reveals a staggering 758,000 young adults may be missing out on these funds, with the average account holding £2,242.
What Are Child Trust Funds?
Child Trust Funds are tax-free, long-term savings accounts established for children born between September 1, 2002 and January 2, 2011. Each account received an initial government contribution of at least £250, with many families adding further savings over the years. Young people gain control of their accounts at age 16, with the funds maturing when they turn 18, allowing them to either withdraw the money or reinvest it for their future.
Official Guidance and Personal Stories
Myrtle Lloyd, HMRC's chief customer officer, emphasised the importance of these funds, stating: "Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a Child Trust Fund can make all the difference. Find yours today by searching 'find my Child Trust Fund' on GOV.UK."
Hope Kerr-Williams, a 22-year-old apprentice from Nottingham, shared her positive experience: "Having my Child Trust Fund account saved me from going into an overdraft or borrowing money when I had a lot of expenses at the start of university. It gave me independence and a great start to adult life, which I'm still grateful for." Her account, discovered through her parents, had grown to £5,000 by the time she claimed it at age 18.
Expert Advice and Employer Role
Financial experts are strongly encouraging young people and their families to check their eligibility. Antonia Medlicott, founder and MD of Investing Insiders, advised: "If you haven't yet received a Child Trust Fund payment, this could literally be money with your name on it, so it's well worth taking five minutes to check. The best news is getting hold of the money is surprisingly easy and you should never need to pay anyone to help you do so."
Kate Underwood, founder of Kate Underwood HR and Training, highlighted the role employers can play: "That 'lost' £2,242 could be the difference between your young employee thriving, or cracking under the cost of living. Employers, share this with your teams, especially parents." She noted that these funds could cover essential costs like rent deposits, travel-to-work expenses, apprenticeship tools, or course fees.
How to Claim Your Funds
The process for claiming Child Trust Funds has been designed to be straightforward:
- Young people who know their Child Trust Fund provider can contact them directly to claim their savings.
- Those unsure where their account is held can use the GOV.UK Child Trust Fund locator tool, which requires only a National Insurance number and date of birth.
- The HMRC app provides easy access to National Insurance numbers and other essential information, simplifying the claiming process.
Underwood added context about the financial pressures facing young adults: "Loads of young adults are living at home longer because starting life is eye-wateringly expensive. Parents are subsidising it all. If a Child Trust Fund is sitting there unclaimed, it can take real pressure off the whole household."
With substantial sums remaining unclaimed, HMRC's campaign aims to ensure young people don't miss out on this valuable financial resource as they embark on their adult lives, whether through apprenticeships, employment, or further education.
