HMRC letters are arriving on doormats across the UK, offering a potential £2,200 boost for households with unclaimed Child Trust Funds (CTFs). BBC Morning Live personal finance expert Laura Pomfret explained the initiative on the show, hosted by Rav Wilding and Holly Hamilton.
What Are Child Trust Funds?
CTFs are long-term, tax-free savings or investment accounts for children born in the UK between 1 September 2002 and 2 January 2011. Initially funded by government vouchers, these accounts allow parents to save up to £9,000 annually. The funds belong entirely to the child and are accessible only upon turning 18.
Unclaimed Accounts Total £1.5 Billion
According to Ms Pomfret, approximately 750,000 CTF accounts remain unclaimed, totalling £1.5 billion. The average amount in each account is £2,200, thanks to growth over time from initial deposits of £250 or £500 for low-income families.
“The Labour Party government back then gave parents a £250 voucher and £500 for some low-income families to put into savings or investments for their children,” Ms Pomfret said. “And lots of things you didn’t do as a parent, put it in, the government put it away for the family, and so many people have just forgotten about them.”
How to Claim
HMRC has announced it will send letters to individuals aged 21 and over to notify them of their unclaimed CTFs. However, people aged 18 to approximately 24 can proactively search for their funds online. Ms Pomfret urged parents and grandparents to ask young adults to check if they have a CTF.
“Their parents or grandparents may have forgotten,” she added. “But if you are someone that’s between 18 and I think it’s going to be approximately 24 given the dates, you can proactively go and see if you can find your child trust fund if you got one, get a hold of it and guess it’s yours.”
