Financial expert Martin Lewis has drawn attention to a potentially significant sum of money that young people aged 22 and under may have in their name. Lewis is urging individuals in this age group to investigate whether they have an unclaimed Child Trust Fund (CTF). These funds were established for those born between September 1, 2002, and January 2, 2011, with each eligible child receiving a £250 voucher (£500 for those from lower-income families) to kickstart their savings journey. The initiative aimed to foster a culture of saving early on, allowing up to £9,000 to be saved annually in these accounts.
However, a crucial detail is that if a CTF was not opened by a parent or guardian, HMRC automatically created one on behalf of the child. This has resulted in many forgotten accounts that could potentially hold a substantial amount of money, unknown to their owners. These funds become accessible when the individual reaches 18 years old. To assist those who may have misplaced their CTF details, Martin Lewis has provided guidance on how to retrieve these funds at no cost.
Recent data from HMRC indicates that over 670,000 individuals between the ages of 18 and 22 have yet to claim their CTF money, with the average value of these savings accounts being £2,212. While new CTF accounts cannot be opened since the scheme ended in 2011, contributions to existing accounts are still possible. If the CTF provider’s name is known, individuals can contact them directly for more information about their account. Alternatively, for those who have lost their account details, HMRC offers assistance in locating the account through an online form on the GOV.UK website.
Individuals aged 16 or above looking for their own account, as well as parents or guardians of children under 18, can avail of this service by providing their National Insurance number and setting up a free Government Gateway account. Upon submission of the necessary information, HMRC aims to provide the name of the CTF provider within three weeks. Alternatively, the information can be requested by post addressing Charities, Savings and International 1, at HMRC, BX9 1AU. It is advisable to include as much detail as possible, such as the account holder’s full name, date of birth, address, and National Insurance number.
In light of the potentially significant sum of money sitting in unclaimed CTFs, it is essential for young people aged 22 and under to investigate and reclaim any funds that may be rightfully theirs. Martin Lewis’s alert serves as a reminder for individuals to check for any unclaimed Child Trust Funds that could amount to a substantial financial resource.