Thousands of young adults are being encouraged to search for any overlooked or misplaced Child Trust Funds. Recent data from HMRC reveals that 758,000 individuals aged 18 to 23 have not yet collected their matured Child Trust Funds, which hold an average balance of around £2,242. The total amount in these accounts may vary based on the contributions made over time.
Child Trust Funds were established by the Government for children born between September 1, 2002, and January 2, 2011. These accounts were initiated with an initial deposit of either £250 or £500 for children from lower-income households. Families could then contribute up to £9,000 annually into these accounts, and the funds can be accessed by the account holder upon reaching the age of 18.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, emphasized the importance of checking for any unclaimed savings, stating that individuals within the specified age range might have funds waiting for them without their awareness. To locate their Child Trust Fund, individuals can search ‘find my Child Trust Fund’ on GOV.UK or contact their fund provider directly if known. The National Insurance number and date of birth of the account holder are required to retrieve the account details, which are held by various financial institutions.
In the past year, over 563,000 young adults have utilized online tools to track down their Child Trust Funds, with the highest number of searches recorded in September 2024. Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, praised HMRC’s initiative to reunite individuals with their unclaimed funds, highlighting the significance of this money in kickstarting financial stability for young people.
Tayo Olutunde, a 22-year-old accounting and finance student residing in Leeds, shared his experience of discovering a Child Trust Fund worth over £2,000. Tayo initially came across information about Child Trust Funds on social media but only recently confirmed the existence of his account with the help of his mother.
By taking advantage of available resources like the GOV.UK locator tool, young adults can potentially uncover significant savings that could positively impact their financial well-being.
