Unclaimed Child Trust Funds: A Financial Opportunity for Young Adults

The UK government has revealed that approximately 758,000 young adults are missing out on an average of £2,242 from their Child Trust Fund accounts, according to new findings from HM Revenue and Customs (HMRC). Established for every child born between September 1, 2002, and January 2, 2011, these long-term, tax-free savings accounts were initially funded with a government deposit of £250, with additional contributions for children from low-income families or in local authority care. While young individuals can manage these accounts from age 16 and withdraw funds upon turning 18, many have yet to claim their savings.

Young people should claim £2,242 Child Trust Fund says HMRCThe Independent

The HMRC is urging young people, particularly during National Apprenticeship Week, to check for unclaimed funds that could significantly ease the financial burden of starting adult life. Myrtle Lloyd, HMRC’s chief customer officer, emphasized the potential impact of these funds, stating, “Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a Child Trust Fund can make all the difference.”

Young people should claim £2,242 Child Trust Fund says HMRC

To assist those who may have lost track of their Child Trust Funds, HMRC has provided guidance. Young adults are encouraged to search for their accounts on the official Gov.uk website or utilize the free tool offered by The Share Foundation. HMRC advises against using third-party agents that charge fees for locating these funds, as the process can be completed without incurring costs.

The Independent

Hope Kerr-Williams, a 22-year-old apprentice from Nottingham, shared her experience of claiming her Child Trust Fund at 18, which had grown to £5,000. She utilized the funds for essential expenses related to her university move, stating, “Having my Child Trust Fund account saved me from going into an overdraft or borrowing money when I had a lot of expenses at the start of university.” Her story highlights the practical benefits these funds can provide in easing the transition to adulthood.

The IndependentYoung people should claim £2,242 Child Trust Fund says HMRC

Experts are advocating for increased awareness among young people and their families regarding unclaimed Child Trust Funds. Antonia Medlicott, founder and MD of Investing Insiders, urged individuals to check their eligibility, noting, “This could literally be money with your name on it.” Additionally, Kate Underwood, founder of Kate Underwood HR and Training, stressed the importance of employers encouraging young employees to claim these funds, as the average amount could significantly impact their financial stability.

Young people should claim £2,242 Child Trust Fund says HMRC

The unclaimed Child Trust Funds represent a substantial financial opportunity for many young adults in the UK. With simple steps to access these funds, individuals can potentially alleviate financial pressures associated with education and early career expenses. As HMRC continues to promote awareness, the hope is that more young people will take advantage of this opportunity before the funds remain unclaimed.

Young people should claim £2,242 Child Trust Fund says HMRC