The tax office has issued a new alert about Child Trust Fund savings accounts, which are worth an average of £2,200. HM Revenue and Customs (HMRC) urged people born between September 1, 2002, and January 2, 2011, to check if they have one, and if they can cash it in.
Child Trust Funds are long-term, tax-free savings accounts set up for children born between those dates, with an initial £250 contributed by the Government. People who hold an account can withdraw the money once they turn 18. However, many may have forgotten the accounts exist, as thousands are yet to claim their money. In a new post on X, HMRC said: “If you were born between September 1, 2001 and January 2, 2011, you are likely to have a #ChildTrustFund worth an average of £2,200.”
To locate their accounts, people can use the free “Find your Child Trust Fund” tool on GOV.UK.
To access the information, people need their National Insurance number, which can be easily found using the HMRC App, along with their date of birth.
The accounts are maintained by banks, building societies, and other savings providers until they are withdrawn or reinvested; they are not held by the Government.
The official locator tool is free to use, so you won’t need to pay third-party agents extortionate rates to source your account for you.
These services may reduce the amount received and delay the process, as users must still provide agents with the same information needed to search for their accounts. In one shocking case, surprise fees slashed the money in one man’s account from £250 to just £12.39.
Sharon Davies, CEO of Young Enterprise, said: “We would encourage all young people to investigate if they have money which is unclaimed in a Child Trust Fund and to use it wisely.”
She added that a “disproportionate amount of the money” is unclaimed by young people from disadvantaged backgrounds, who would benefit most from these funds.
The Child Trust Fund scheme closed in 2011, with the option of investing in a Junior Individual Savings Account (ISA) available instead.
