Millions of Child Trust Funds (CTFs) remain unclaimed, with low-income families owed an average of £2,900 each. This article explains what a CTF is, who's eligible, and how to claim your forgotten savings.
Thousands of Brits could be missing out on a significant financial windfall thanks to an often-overlooked government scheme . Created during the tenure of former Prime Minister Gordon Brown, Child Trust Funds ( CTF s) were designed to assist families in establishing a savings foundation for their children while encouraging responsible financial habits from an early age. Over six million CTF s were issued, with an average value of approximately £2,000 each.
However, a staggering 728,000 account holders remain unaware of their existence. Since the program's conclusion in 2011, a collective £1.4 billion has gone unclaimed, primarily from low-income recipients who are owed an average of £2,900 each.Are you potentially entitled to a portion of this unclaimed, forgotten cash? Here's a comprehensive guide to help you understand. What is a Child Trust Fund and who is eligible? A Child Trust Fund is a specialized savings account established for children born in the UK between September 1, 2002, and January 2, 2011, whose parents were receiving Child Benefit. As part of the initiative, the government contributed £250-£500 to these long-term, tax-free savings accounts upon the child's birth, with an additional £250-£500 deposited when they turned seven.The primary objective of the scheme was to cultivate positive savings habits among young individuals. Families and guardians received vouchers to initiate an account shortly after the birth of their child. If they failed to claim within a year, the government automatically allocated an account. This implies that if you are currently aged 14 to 22, you may have a CTF. Parents or guardians manage this money, held at various banks, building societies, or other savings providers, and can deposit additional funds until the child reaches 16. At 18, young people gain control over their funds, allowing them to withdraw the cash or transfer the entire amount into an adult ISA. How to Claim If you suspect you may have a CTF, the initial step is to inquire with your parent or guardian about the account provider. Don't fret if they have forgotten; you can also utilize this free tool provided by HMRC. All you need is your National Insurance number and adoption details if applicable. You will receive a letter (usually within three weeks) containing your account details, including the date it was opened. You can then contact the provider for further information, including your accumulated savings and the subsequent steps. Alternatively, you can engage the services of the Share Foundation to trace a lost CTF. This free service is particularly beneficial if your account was transferred to a different provider after its initial opening. The charity also allows you to track the application process and offers financial awareness tips throughout.Financial expert Martin Lewis has cautioned against companies attempting to charge young people for locating their Child Trust Fund. 'Don't touch them, don't sniff them, don't smell them, don't go near them,' he advised in a video posted on the MoneySavingExpert YouTube channel. 'This is easy to do yourself.
Child Trust Funds CTF Savings Unclaimed Money Government Scheme Financial Advice
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