HM Revenue and Customs (HMRC) has urged more than 700,000 young people to redeem unclaimed cash in their Child Trust Fund. Latest HMRC figures show 758,000 young people have yet to withdraw their savings, with the average account holding a healthy £2,242.
Child Trust Funds are long-term, tax-free savings accounts that guardians could set up for children born between September 1, 2002 and January 2, 2011, with an initial government deposit of at least £250. Young people can take control of their account at 16, but once they turn 18 years old, the account matures and they can decide whether they want to withdraw the money or re-invest.
Antonia Medlicott, founder and MD at Investing Insiders, said it can be « surprisingly easy » to access the funds, and you should never need to pay anyone to help you do so.
« 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. »
Young people can check whether they have an account by searching ‘find my Child Trust Fund’ on gov.uk.
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. »
« Loads of young adults are living at home longer because starting life is eye-wateringly expensive, » she said.
« 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. »
Myrtle Lloyd, HMRC’s Chief Customer Officer, added: “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. »
