UK’s youth could be sitting on a goldmine, with around £1.4bn left unclaimed in Child Trust Funds. These tax-free savings accounts were set up for every child born between 1 September 2002 and 2 January 2011, with the government initially contributing £250.
As teenagers turn 16, they can take control of their fund, and at 18, they’re entitled to cash it as the account matures. Despite this, thousands of accounts remain untouched, often because the beneficiaries are unaware they exist or don’t know which institution holds their funds.
Joanne Walker, Technical Officer for LITRG, has previously pointed out: “There are many young people who are not aware they have a Child Trust Fund. Their parent or guardian may not have taken up the government’s offer when they were born, but HMRC would have opened an account on their behalf.”
To track down a Child Trust Fund, individuals can use the dedicated online tool on GOV. UK, armed with their National Insurance Number and, if necessary, adoption details.
Parents can also assist in locating their child’s trust fund, but will need specific information to do so.
This includes:
- the child’s full name, address and date of birth
- any previous names you or the child have used
HMRC has stressed the importance of completing their form in one go, as it doesn’t save progress. To be prepared, you’ll need several details at hand: the child’s full name, address, date of birth, and any previous names used by you or the child.
This crucial tool is designed to identify your Child Trust Fund provider and confirm the account’s existence but won’t disclose the fund’s value. Once located, withdrawing from the fund typically takes about three to five days, after which the account is closed.
Walker chimed in, highlighting the cost-saving aspect: “If they want to find out if they have a Child Trust Fund and withdraw the money, they do not need to pay someone else to do this for them. HMRC offers a free service for people who know the name of the savings provider that holds their account.
Walker further clarified support options, saying, “Even if they do not have this information, HMRC can help them find it if they provide their date of birth and National Insurance number. For those who want help doing this, there are organisations available who can help locate the fund and who do not charge for the service.
Concluding on a note of caution, Walker advised, “There is nothing wrong in using a company that will charge for their services as long as people make an informed choice to do so. However, these simple steps can ensure young people are able to find and access their fund, without the need for an expensive fee.”
