Unearth Your Hidden Cash: The Search for Unclaimed Child Trust Fund Money
Did you know that there is an astounding £1.7 billion waiting to be claimed by young adults? A recent analysis of HMRC data by Wealthify has revealed that over a million 18-21 year-olds have yet to collect their Child Trust Fund (CTF) money, which on average amounts to £2,100. Astonishingly, more than half of young adults are not even aware that CTFs exist, and three out of five have no idea how to retrieve their cash. In this article, we will provide you with all the information you need to know about CTFs and how you or your child can claim this secret stash of money.
So, what exactly is a CTF? These tax-free savings accounts were introduced by the Government in 2005. Every child born between September 1, 2002, and January 2, 2011, received a voucher worth £250 to kickstart their savings journey. In certain cases, an additional top-up payment of £250 was made for children born between September 1, 2009, and July 31, 2010. Families with lower incomes were entitled to £500 in each scenario. The CTF scheme officially closed on January 1, 2011.
The first batch of CTFs matured in 2020, and children will continue to reach the age to claim their funds until 2029. However, there is an issue with unclaimed CTFs stemming from the “lost years” between the scheme’s closure in 2011 and the start of maturity in 2018/19. During this period, CTFs slipped down the priority list, leading HMRC to lose track of providers. Meanwhile, providers struggled to contact hundreds of thousands of parents and children, often due to changes in their contact information.
Now, let’s discuss how you can track down your child’s CTF. Luckily, you may not need the assistance of the original provider to locate the account. If your child wants to find their own CTF, they can fill out an online form to request information from HMRC about the account’s origin. They will need to create a Government Gateway User ID and password if they haven’t already done so, and they must have their National Insurance number on hand. On the other hand, if you are a parent searching for a CTF that you set up, you will need your child’s Unique Reference Number, found on the annual CTF statement, or their National Insurance number. For those aged 16-18, an alternative route to potentially finding their account is through the Share Foundation, a charity that specializes in this area.
Andrew Russell, CEO of Wealthify, highlights the importance of CTFs, saying, “CTFs are a leveller because they were available to all children born in the UK at that time, regardless of background.” He believes that accessing a lump sum like this offers young people a unique chance to engage positively with money just as they start their financial independence journey. Unfortunately, too many teenagers are at risk of missing out on this once-in-a-lifetime opportunity simply because they are unaware of it.
Sharon Davies, CEO of Young Enterprise, adds that the cost-of-living crisis has increased financial concerns within households. She emphasizes the importance of informing and educating young people about all available resources to ensure they have the skills needed to establish a positive relationship with money and a secure future. Child Trust Funds have the potential to be a life-changing tool that a significant number of 16-18 year-olds are unaware of, even though they offer an incredible opportunity to learn about money management from an early stage.
So, don’t let your secret pot of cash go undiscovered. Start the journey to claiming your Child Trust Fund money today, before this valuable opportunity slips through your fingers.
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