Thousands of youngsters are on the verge of reclaiming approximately £2,200 each in forgotten savings following the government’s initiative to locate Child Trust Funds. These funds, totaling around 6.3 million accounts, were established by the government for children born between September 1, 2002, and January 2, 2011.
Child Trust Funds were created to promote saving habits, with an initial deposit of £250 or £500 for children from low-income families. Families had the option to contribute up to £9,000 annually to these accounts. However, a significant number of these accounts have been misplaced or overlooked, leaving over 750,000 young individuals with unclaimed funds averaging £2,200 each.
To facilitate the reunification of these funds with their rightful owners, the government has launched a dedicated taskforce to encourage more young people to access their accounts. The savings are not under government custody but are managed by banks, building societies, or other financial institutions.
Key members of the taskforce, including One Family, Coutts, Nationwide, HSBC UK, Pilling, and others, are working towards this cause. The initiative aims to raise awareness among young individuals about their unclaimed Child Trust Funds, as highlighted by Rachel Blake, the Economic Secretary to the Treasury.
HMRC’s Chief Executive, JP Marks, emphasized the significant amount of unclaimed funds, averaging £2,200 per account, waiting to be claimed. HMRC has initiated letters to remind individuals of their Child Trust Funds, cautioning against potential scams via text or email impersonating HMRC.
Individuals are encouraged to proactively search for their Child Trust Fund provider or utilize the ‘Find my Child Trust Fund’ tool on GOV.UK, requiring their National Insurance number. This proactive approach enables individuals to take control of reclaiming their forgotten savings without waiting for outreach efforts from HMRC.
By bringing together government and industry efforts, the initiative seeks to streamline the process of locating and accessing unclaimed Child Trust Funds, ensuring that young individuals can rightfully retrieve their savings.