HM Revenue and Customs (HMRC) has issued a reminder to 18 to 22-year-olds sitting on unclaimed Child Trust Funds (CTFs) worth more than £2,000 on average. Approximately 671,000 young adults could be unaware they have savings waiting to be claimed, with the average CTF holding £2,212.
CTFs were set up for children born between September 1, 2002, and January 2, 2011. The government contributed around £250 to each account when it was first opened, with children from low-income families or in local authority care receiving an additional £250. The savings were intended to grow with the child, who could take control of the account at age 16 and withdraw the funds upon turning 18.
Young adults, or their parents and guardians, can contact their CTF provider directly if they already know the provider’s details. If they do not know the account’s location, they can use an online tool on the government’s website. To access the information, users will need their National Insurance number and date of birth.
The CTF scheme closed in January 2011 and was replaced by Junior ISAs. While third-party agents offer services to search for CTFs, HMRC warns that using these agents can lead to unnecessary charges, sometimes including a portion of the value of the savings account, significantly reducing the amount received.
Eligible individuals are encouraged to claim their funds directly through the government’s free service to avoid these charges.
