HMRC is advising parents to verify if their child holds an overlooked savings account valued at £2,200. The alert pertains to Child Trust Funds, which were provided to 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 promote saving habits within families. Parents had the option to contribute up to £9,000 annually to the Child Trust Fund. If parents did not initiate the fund, HMRC would have done so on behalf of the child, leading to many accounts being forgotten.
According to recent HMRC data, the average Child Trust Fund holds a value of £2,200, although individual account balances may vary based on the savings deposited. In a message on Twitter, HMRC alerted parents to the potential existence of a Child Trust Fund for their child upon turning 18, typically amounting to £2,200.
While new Child Trust Funds cannot be opened, contributions can continue to be made to existing accounts, with access granted upon reaching 18 years of age. To locate a lost account, individuals can contact their Child Trust Fund provider directly or request assistance from HMRC through the form available on GOV.UK.
Parents or guardians of children under 18, or individuals aged 16 and above seeking their own account, can request HMRC to trace a Child Trust Fund. Essential details including full name, date of birth, address, National Insurance number, and Government Gateway ID are necessary for the online form submission or postal request to HMRC.
A recent account by The Mirror highlighted the story of Tayo Olutunde, a 22-year-old accounting and finance student residing in Leeds, who discovered a Child Trust Fund worth over £2,000. Tayo initially learned about Child Trust Funds on TikTok but only confirmed the existence of his account after discussing it with his mother.
[End of the rewritten article]
