Thousands of youths may soon reclaim approximately £2,200 each in unclaimed savings, following the Government’s initiative to locate Child Trust Funds. Initially set up by the Government for children born between September 1, 2002, and January 2, 2011, around 6.3 million Child Trust Fund accounts were established.
These accounts aimed to promote saving habits, with an initial deposit of £250, or £500 for children from low-income families, and the option for families to contribute up to £9,000 annually. However, a significant number of these accounts have been misplaced or forgotten over time, leading to an estimated 750,000 young individuals with unclaimed funds averaging £2,200 each.
To assist in reconnecting these funds with their rightful owners, a new taskforce has been launched by the Government to encourage more young people to access their accounts. Notably, the savings accounts are not managed by the Government but are kept by banks, building societies, or other financial institutions.
Key members of the taskforce include One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments, and The Share Foundation. Rachel Blake, the Economic Secretary to the Treasury, emphasized the importance of raising awareness and simplifying the process for individuals to locate and claim their Child Trust Funds.
HMRC’s Chief Executive and First Permanent Secretary, JP Marks, highlighted that many young individuals have Child Trust Fund accounts with an average of £2,200 waiting to be retrieved. HMRC has initiated efforts to remind individuals of their Child Trust Fund accounts through letters sent in April as part of the ongoing initiative.
Individuals are advised not to wait for contact but to proactively reach out to their Child Trust Fund provider if known. Alternatively, a GOV.UK tool is available to assist in identifying the location of unclaimed funds. It is essential to have your National Insurance number for this process.
