Many young people are yet to claim (Image: Getty )
HM Revenue and Customs (HMRC) is encouraging young people who haven’t yet accessed their Child Trust Fund to do so during National Apprenticeship Week (February 9 to 15), with financial experts emphasising « it’s easy ». While apprenticeships offer an excellent foundation for entering the workforce, recent HMRC data reveals 758,000 young adults may be overlooking available funds, as they’ve not yet claimed their Child Trust Fund savings, which average £2,242.
Child Trust Funds are long-term, tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011, with an initial government contribution of at least £250. Young people can manage their account from age 16, but upon reaching 18, the account matures, allowing them to choose whether to withdraw the funds or reinvest them.
Myrtle Lloyd, HMRC’s chief customer officer, said: « 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. »
‘Easy’ to claim £2,242 from HMRC
Antonia Medlicott, founder and MD at London-based Investing Insiders, has called on young people and their families to verify what they’re entitled to, noting it can be « surprisingly easy » to retrieve the money. She urged: « My message is: 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.
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« Go to the official site or, alternatively, use a finding service that helps people track down lost trust fund and pension money. It’s completely free and you don’t need to have any original paperwork to be paired with the money you’re entitled to. »
Kate Underwood, founder of Southampton-based Kate Underwood HR and Training, has called on business owners to relay HMRC’s message to their employees.
Experts say it’s easy to claim (Image: Alamy/PA)
She said: « 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.
« HMRC says 758,000 young people still haven’t claimed their Child Trust Fund, worth £2,242 on average. That’s not a treat. That’s a rent deposit, travel-to-work, tools for an apprenticeship, or ‘I can actually afford that course’ fund.
« 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 and help that young person move into education, training or work without leaning on overdrafts and buy-now-pay-later. If their child was born between September 1, 2002, and January 2, 2011, it’s worth checking. At 16 they can take control and at 18 it matures and they choose what happens next. »
