Young adults urged to claim £2,000 savings pot opened when they were born
19.09.2023 - 10:07
HM Revenue and Customs (HMRC) is encouraging nearly 430,000 18 to 21-year-olds with an unclaimed Child Trust Fund, worth an average of £2,000, to claim their cash as part of UK Savings Week, which runs until Sunday, September 24.
Child Trust Funds are long-term, tax-free savings accounts and were set up for every child born between September 1, 2002 and January 2, 2011, with the UK Government contributing an initial deposit of at least £250. Many children from low-income families or in local authority care received an additional amount of £250.
Funds can be withdrawn once the account matures when the child turns 18, however, some young adults - or their parents - may have forgotten about their accounts or be unaware one was set up for them. Young adults and parents can search on GOV.UK to find out where their Child Trust Funds account is held.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Many 18-21 year olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on.
“I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.”
There are 5.3 million open Child Trust Fund accounts. Young people aged 16 or over can take control of their own Child Trust Fund, although the funds can only be withdrawn once they turn 18.
More than 500,000 matured Child Trust Fund accounts have been claimed or transferred into an Isa since the oldest savers in the scheme turned 18 in September 2020.
Sharon Davies, chief executive of Young