Thousands of young adults are being encouraged to verify if they possess a forgotten or misplaced Child Trust Fund. Recent data from HMRC reveals that 758,000 individuals aged 18 to 23 have not yet availed themselves of their matured Child Trust Funds, which hold an average value of £2,242. The actual amount in each account varies based on the total contributions made.
Child Trust Funds were established by the government for children born between September 1, 2002, and January 2, 2011, with an initial deposit of £250, or £500 for children from low-income families. Subsequently, families could contribute up to £9,000 annually to these accounts, and the funds become accessible when the account holder reaches 18 years of age.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, emphasized the importance of checking for these savings, stating that many young adults may be unaware of the potential payout awaiting them. Individuals who know their Child Trust Fund provider can contact them directly, while those unsure of the account location can utilize the GOV.UK locator tool by providing the account holder’s National Insurance number and date of birth.
Over the past year, more than 563,000 young people have searched online to locate their Child Trust Funds, with September 2024 being the busiest month for searches. Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, praised HMRC’s initiative, highlighting the value of unclaimed funds in helping young individuals at an essential stage of their financial journey.
Notably, a recent report by the Mirror featured Tayo Olutunde, a 22-year-old accounting and finance student from Leeds, who discovered a Child Trust Fund worth over £2,000. Tayo shared his experience of learning about the fund through social media and eventually confirming its existence with his mother.
