Thousands of youths may soon reclaim forgotten savings averaging £2,200 each as the Government initiates a campaign to locate lost Child Trust Funds. Approximately 6.3 million accounts were established by the Government for children born between September 1, 2002, and January 2, 2011, aiming to promote saving habits. Families received an initial deposit of £250 or £500 for children from low-income households, with an option to add up to £9,000 annually.
Over time, many accounts were misplaced or overlooked, leading to an estimated 750,000 young individuals having unclaimed funds. To facilitate the return of these savings, the Government has formed a task force to assist young people in accessing their accounts.
Child Trust Fund accounts are not managed by the Government but by banks, building societies, or other financial institutions. The task force comprises organizations like One Family, Coutts, Nationwide, and others.
Rachel Blake, the Economic Secretary to the Treasury, expressed concern that numerous young individuals are unaware of their Child Trust Fund whereabouts. The Government aims to bridge this gap by enhancing coordination between the authorities and industry partners to simplify the claiming process.
HMRC’s Chief Executive, JP Marks, highlighted that many individuals have unclaimed funds, emphasizing that it is their rightful money. HMRC encourages individuals to use the ‘Find my Child Trust Fund’ tool on GOV.UK to locate their accounts. HMRC began sending reminders in April to prompt individuals about their Child Trust Funds, assuring that any communication from HMRC requesting financial information is a scam.
Individuals can proactively reach out to their Child Trust Fund provider or utilize the GOV.UK tool to track their funds, requiring their National Insurance number for verification.
