HMRC is advising parents to verify whether their child possesses an overlooked savings account with an average value of £2,000. Child Trust Funds were financial accounts designated for children born between September 1, 2002, and January 2, 2011.
Each child received a voucher worth £250, or £500 for those from lower-income families, to initiate the account. Families could subsequently contribute up to £9,000 annually into a Child Trust Fund.
In cases where parents did not establish a Child Trust Fund, HMRC would have initiated one on behalf of the child, leading to numerous young individuals potentially unaware of owning such accounts.
Recent data from HMRC reveals that over 670,000 individuals aged 18 to 22 have yet to claim their Child Trust Fund, with an average account value of £2,212.
In a statement on X, HMRC emphasized, “If your child is between 18 and 22, they are eligible to redeem their #ChildTrustFund, with an average claim amounting to £2,200.”
While initiating a new Child Trust Fund is no longer possible, individuals can continue to contribute to an existing account. Access to a Child Trust Fund is only attainable once the child reaches 18 years of age.
If aware of the Child Trust Fund provider’s name, individuals can directly contact them for further details on the account. In situations where the account details are lost, individuals can seek HMRC’s assistance in locating it by completing a form on GOV.UK.
Parents or guardians of children under 18, or individuals aged 16 and above looking for their personal account, can request HMRC to locate a Child Trust Fund. The process involves providing a National Insurance number and creating a Government Gateway account, which is free of charge. Upon submitting the required information, HMRC should disclose the Child Trust Fund provider’s name within three weeks.
Alternatively, individuals can request account details via mail by sending a letter to: Charities, Savings and International 1, HMRC, BX9 1AU. It is advisable to include comprehensive details such as the account holder’s full name, date of birth, address, and National Insurance number.
In a previous statement, Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, stated, “Thousands of Child Trust Fund accounts remain unclaimed – our aim is to reunite young individuals with their funds, and we aim to simplify the process as much as possible.”
She added, “You do not need to pay anyone to locate your Child Trust Fund; discover yours today by searching ‘find your Child Trust Fund’ on GOV.UK.”