HMRC is urging Britons to check if they could be missing out on unclaimed savings worth thousands in forgotten Child Trust Funds.
In September last year, almost 430,000 people still had yet to claim the cash, worth an average of £2,000 each.
However, it remains apparent that money is owed. In a post recently published on social platform X, HMRC wrote: “Were you born between 1 Sep 2002 and 2 Jan 2011?
“Check if you have forgotten savings in a Child Trust Fund – worth around £2,000 on average (T&Cs apply).
“Claiming your Child Trust Fund is simple. Find out how to do it yourself and keep every penny.”
Child Trust Funds are long-term, tax-free savings accounts. The Government set them up for every child born between September 1, 2002, and January 2, 2011, and contributed an initial deposit of at least £250.
Funds can be withdrawn once the account matures when the child turns 18.
More than 500,000 matured Child Trust Fund accounts have been claimed or transferred into an ISA since the oldest children in the scheme turned 18 in September 2020.
However, hundreds of thousands more are thought to still be lying dormant.
How to find a Child Trust Fund
If people are aware of their account provider, they can directly contact them to access their Child Trust Fund savings.
Alternatively, if they’re unsure, they can approach HM Revenue and Customs (HMRC) to locate their Child Trust Fund. They can then explain where the account was originally opened.
HMRC also offers a free tool people can use to find a Child Trust Fund.
Users must be a parent or guardian of a child under 18, or aged 16 and over looking to locate their own trust fund. People will be asked for their own National Insurance number or, if searching for the child, the child’s National Insurance number.
HMRC said it typically responds within three weeks of the request with a letter enclosing the details.
Those who don’t get a response within that time frame can write to HMRC instead.
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 are the very people who would benefit most from these funds.
